Glanbia Posts 17% Revenue Increase In Third Quarter
Glanbia revenues showed a 16.9% increase, driven by a 2.4% volume increase in its third quarter of 2019 versus prior year, its latest financial figures showed.
The global nutrition group outlined that its price was up 3.2% during the period and its price increased by 3.2% acquisitions adding 11.3%, according to its Interim Management Statement for the nine month period ended, 5 October 2019.
"This was driven by a strong performance from Glanbia Nutritionals as it meets demand from its global and regional customers for dairy and non-dairy solutions, as well as a good contribution from acquisitions," said Siobhán Talbot, Group Managing Director said.
Glanbia Performance Nutrition (GPN) increased revenue by 16.5% with the SlimFast acquisition adding 25.8%
However, this figure was offset by a price decline of 1.4% and a volume decline of 7.9%.
"In GPN while we are very pleased with the performance of the SlimFast acquisition our like-for-like volume performance is disappointing." She added.
"This is largely driven by specific challenges in key non-US markets."
GPN like-for-like volumes were weaker than expected in the third quarter as key non-US markets in Brazil, Middle East and India remain challenging.
"We are actively addressing the issues in these markets as they represent a compelling long term growth opportunity for the Group," Talbot said.
Glanbia expects to deliver over 80% operating cash conversion of earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2019.
Total 2019 capital expenditure is expected to be approximately €70 million to €80 million, the group said.
On this basis Glanbia expects its net debt to adjusted EBITDA ratio to be under 2 times at the 2019 financial year end.
Talbot said: "We reiterate our full year guidance of adjusted earnings per share on a reported basis of being in a range of 88 cent to 92 cent, assuming foreign exchange rates remain at current levels.”
© 2019 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.