Revenues at global dairy and nutrition group Glanbia for the first nine months of 2022 are up 23.1% year-on-year on a constant currency basis after raising prices 20.9% this year.

The group has upgraded earnings guidance to 10-13% growth in adjusted earnings per share, but managing director Siobhán Talbot said the global economic environment "continues to be challenging".

On a reported basis, revenues rose by more than a third (+36.8%) reflecting the strength of the US dollar, while sales volumes increased just 0.8% against the first three quarters of 2021.

Glanbia's performance nutrition (GPN) division experienced like-for-like revenue growth of 14.4%, after raising prices 15.6% and seeing sales volume decline 1.2%.

In the third quarter alone, GPN saw revenue growth of 22% and 12-week consumption growth in North America of 32.9%.

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Meanwhile, Glanbia's nutritional solutions (GNS) business saw revenue growth of 14.5% on a like-for-like basis, raising prices 17.7% while sales fell 3.2%. The company blamed timing difficulties with dairy ingredients for the sales drops.

"I am pleased to report that the momentum outlined at our half year has been sustained through the third quarter. Consumption trends continue to be resilient across the performance nutrition and healthy lifestyle brand portfolios in GPN," said Talbot.

"Revenue growth was primarily driven by pricing actions in response to unprecedented inflation. The global macro-economic environment continues to be challenging and we are monitoring consumption and inflation trends closely.

"The strength of our platforms in better nutrition, supported by the combination of pricing actions taken and operational efficiencies achieved, gives us continued confidence that we will deliver strong full year EBITA growth."

In the Americas, GPN delivered revenue growth of 13.4% over the nine-month period, with volume growth in performance nutrition and healthy lifestyle brands and a decline in sales of SlimFast due to headwinds in the diet categoy.

The healthy lifestyle portfolio experienced consumption growth in the 12 weeks to the beginning of October of 15.8% across the think!, Isopure and Amazing Grass brands, while sale of SlimFast declined 18.2% over that period.

GPN international, which includes direct to consumer brands, grew revenues 14.5% driven by price hikes and the acquisition of LevlUp, while Glanbia Nutritionals recorded sales volume growth of 2.2% and sales value growth of 27.3% after raising prices 23.5%.

Revenue for the GNS portfolio rose 20.3% for the period after raising prices 17.2% with sales volumes declining 3.2%. Glanbia's acquisitions of PacMoore and Sterling Technology continued 5.8% to revenue growth.

Glanbia's US cheese division increased revenues 30.5% after raising prices 26%, with sales growth of 4.5% following the launch of a new joint venture plant in Michigan.

Glanbia has spent €173.5m on share buybacks this year to date, including €50m on the repurchase 4.3m shares between June and September at an average price of €11.62.

Net debt at the company now stands at €750m, an increase of €160.6m year-on-year, of which €91.9m relates to the foreign exchange impact of the US Dollar. At the end of Q3 2022 the group had €1.3 billion in committed debt facilities.

Photo: Siobhán Talbot.