Glanbia Shares Drop Despite Double-Digit Growth
Global food group Glanbia’s shares dropped by 5.47% today after it published its annual figures for 2017. The Kilkenny-based company recorded revenue growth from continuing operations of over 9% to...
Global food group Glanbia’s shares dropped by 5.47% today after it published its annual figures for 2017.
The Kilkenny-based company recorded revenue growth from continuing operations of over 9% to €2.387 billion, but warned that higher milk prices and planned investments will have adverse effects on its performance for the first half of 2018.
“The outlook for 2018 is positive and I expect Glanbia will deliver between 5% to 8% growth in pro-forma1 adjusted Earnings Per Share on a constant currency basis,” said Siobhán Talbot, group managing director.
“We expect growth to be delivered in the second half of 2018 as comparative dairy dynamics and planned investments will adversely affect performance in the first half of 2018,” Talbot added.
The company reported adjusted earnings per share growth of 10.2% to 87.11 cent, marking its eighth year of double-digit earnings growth and will in line with its guidance of 7-10%.
Meanwhile, Glanbia’s wholly-owned revenue from continuing operations was up 9.2%
to €2,387.1 million on a constant currency basis.
Wholly-owned EBITA from continuing operations were up 5.8% to €283.2 million on a constant currency basis.
Across All Segments
Talbot said that growth was broad, with “good volume growth across all segments”, Glanbia Performance Nutrition (GPN), Glanbia Nutritionals (GN) and Joint Ventures (JVs).
GPN delivered revenue growth of 13.7%, with like-for-lilke branded sales growth of 6.3% and EBITA of €169.7 million, a 7.0% increase on prior year, constant currency.
GN delivered revenue growth of 5.4% constant currency and EBITA of €113.5 million, up 4.1% on 2016, driven by a good performance from Nutritional Solutions.
JVs delivered strong results, with share of profits pre-exceptionals of €42.8 million (+64.6%), primarily driven by higher dairy markets and volume growth.
The company also disposed 60% of the Dairy Ireland segment and created a new joint venture, Glanbia Ireland.
“The strategic evolution of the Group portfolio continued in 2017 with the acquisition of two highly complementary businesses to the GPN portfolio, Amazing Grass and Body & Fit as well as the disposal of 60% of Dairy Ireland and the subsequent creation of the Glanbia Ireland JV,” said Talbot.
The acquisition of the US-based Amazing Grass and the online Body & Fit companies indicates Glanbia’s investment in the sprouting sector of plant-based nutrition, fitness and ‘superfoods’.
“These initiatives demonstrate the ambition of the Group to build on its existing strengths, drive future sustainable growth and deliver on our vision to be one of the world’s top performing nutrition companies,” said Talbot.
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