Glanbia posts Q1 revenue fall
Glanbia has posted a revenue fall for the first quarter of the year
First quarter sales at Glanbia have fallen, the group revealed in an interim trading statement toda (27 April).
The firm said for the three months to 2 April total group revenue fell 2.5% on a reported basis and 3.3% on a constant currency basis. Glanbia attributed the fall to price declines that came from reduced dairy market prices.
Its dairy Ireland unit delivered a "satisfactory performance", it said, with revenues down 6.2%, driven by "weather related" volume declines and a price decline which came from declines in fertiliser pricing. The group was, however, positive about the rest of the year for its dairy Ireland division, forecasting further EBITA margin progression expected on flat revenues versus 2015.
"This improved performance is being driven by innovation, cost control and returns from strategic investments made in prior years," it said in the statement.
Glanbia's ingredient business saw a 5.2% fall in revenues on the back of "continued challenges in dairy markets" which caused price declines of 6.7%, offsetting volume growth. Its joint ventures and associates arm saw an 8.3% decline in revenues during the period with a pricing decline associated with "challenging dairy markets" offsetting volume growth.
Revenues in its performance nutrition business increased 5.6% driven by volume growth and price decreases.
Siobhán Talbot, group managing director said: "Glanbia delivered a good performance in the first three months of 2016. Our growth platforms of Glanbia performance nutrition and global ingredients delivered volume growth in the first quarter. Our on-going strategy of building a business to deliver better nutrition via consumer brands and high-quality ingredients has mitigated the impact of weak dairy markets. The outlook for the remainder of 2016 is positive and we reiterate our full year guidance of adjusted earnings per share growth of 8% to 10% on a constant currency basis."
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