Wholly-owned revenues at Glanbia rose 25% on a constant currency basis year-on-year as the Kilkenny-headquartered group experienced higher prices and demand across both its performance nutrition and nutritionals divisions in the first quarter.
On a reported basis, revenues rose by more than a third (33.5%), with the global nutrition company having raised prices by 17% to mitigate the effects of inflation, while volume growth was sustained at 6.9% during the three-month period ending 2 April.
Glanbia Performance Nutrition (GPN) delivered like-for-like revenue growth of 14.7%, driven by higher prices and strong demand in sports nutrition, healthy snacks and plant-based products, while like-for-like revenues at Glanbia Nutritional Solutions (GNS) rose 19%, with pricing again credited along with demand for micro-nutrients.
The group has raised its earnings guidance for the full year and expects 5-10% growth in earnings per share on a constant currency basis in 2022.
"Inflation remains a key dynamic for Glanbia and we have taken significant mitigating actions across the Group by increasing prices by 17.0% in the first quarter and delivering volume growth of 6.9% while managing our cost base prudently," said Siobhán Talbot, Glanbia group managing director.
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"The GPN consumer branded business has performed well delivering volume growth across performance nutrition, healthy snacking and plant based brands as consumer demand for our brands remains robust.
"Our NS ingredients business delivered an excellent quarter as customer demand across micro-nutrients in particular remains strong."
During the quarter, GNS acquired US bioactive ingredient company Sterling Technology for $60m plus deferred consideration, and while the wider Glanbia group sold its 40% stake in the Glanbia Ireland joint venture to Glanbia Co-operative Society for €307m, €123.4m was invested in a share buyback scheme.
Glanbia's acquisitions of snack ingredients business PacMoore Process Technologies and German gaming nutrition start-up LevlUp last year have also contributed to its growth so far in 2022.
Sales volume growth was positive across all segments of Glanbia's business, and the group said demand in its end markets "remains robust," while putting price increases to counteract inflation in the cost of raw materials.
GPN saw revenue growth of 13.8% in the Americas and 20.1% international in Q1, while Glanbia Nutritionals (GN) increased revenues by 29.3%, with sales volumes up 9.4%, prices rising 18.8% and acquisitions delivering 1.1% growth.
GNS revenues increased 22.4% due to volume growth of 4.2%, prices rises of 14.8% and acquisitions contributing 3.4% growth. Sterling brought in revenues of $23.6m in the first quarter, while Glanbia's US cheese division saw revenues grow 32.4% during the period.
Looking ahead, The group said it expects GPN to deliver "double digit revenue growth" for the full year despite the challenges of inflation, the war in Ukraine, and Covid-related supply issues in Asia.
Glanbia now has net debt of €552.3m, an increase of €53.8m year-on-year that it credited to investment in working capital, share buybacks and the Sterling acquisition, and €1.2bn in committed debt facilities.
Photo: Glanbia managing director Siobhán Talbot. (Pic: Getty Images)
