Global nutrition group Glanbia plc’s trading update for the six month period ended 3 July 2021 shows that the company delivered a strong performance ahead of expectations in the first half of 2021.
In H1 2021, wholly owned revenues were up by 20% on a constant currency1 basis (up 11% reported) compared to the prior year due to very strong demand, in the second quarter in particular, across both Glanbia Performance Nutrition and Glanbia Nutritionals, Nutritional Solutions.
The trading update revealed that Glanbia Performance Nutrition and Glanbia Nutritional, Nutritional Solutions both delivered strong EBITA margins in H1 2021 due to positive operating leverage, mix, and the ‘realisation of benefits’ from the Glanbia Performance Nutrition transformation programme.
Joint ventures delivered a performance in line with the prior year.
The trading update is based on preliminary results for the first half of 2021. The Group will publish its full results for the half year 2021 on 12 August 2021.
Full Year Growth
Glanbia had previously expected full year 2021 adjusted EPS growth to be in the upper end of 6% to 12% on a constant currency basis compared to the prior year. As a result of the strong performance in H1 2021, the company has raised its expectations for the year and now expects to deliver full year 2021 adjusted EPS growth of 17% to 22% on a constant currency basis compared to the prior year.
While Glanbia remains vigilant regarding ‘the continued volatile and disruptive potential of the Covid-19 pandemic’, it says that ‘strategic actions’ have enabled a strong recovery in the first half of 2021 from the ‘comparative challenges’ of 2020.
It also believes that the strong first half performance positions it well to navigate expected ‘cost inflation headwinds’ in the second half of the year, while also providing the opportunity to increase investment behind brand marketing and nutritional solutions capabilities, ‘to drive long term sustainable growth’.
- To arrive at the constant currency change, the average exchange rate for the current period is applied to the relevant reported result from the same period in the prior year. The average Euro US Dollar exchange rate for the first half of 2021 was €1 = $1.204 (HY 2020: €1 = $1. 1.102).
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