Glanbia, the Ireland-based dairy and sports nutrition group, reported an increase in first-half income and kept its 2017 growth guidance for pro-forma adjusted earnings per share at 7% to 10%.
The company posted a 4.6% rise in half-year net profit to EUR114.9m for the six months to 1 July. Glanbia said its EBITA was up 9.2% at EUR192.8m. Revenue grew 11.5% to EUR2.04bn.
Glanbia also reported numbers for its continuing operations after closing the sale of 60% of its domestic dairy products business on 2 July.
Looking at Glanbia’s wholly-owned businesses on a continuing basis, EBITA rose 6.6% to EUR148.3m. Revenue was up 10% at EUR1.19bn.
By segment, revenue for Glanbia’s performance nutrition arm, which markets products from whey powders to protein bars, rose 7.7% to EUR544m in the first half. The division’s EBITA increased 3% to EUR83.9m.
Revenue from Glanbia’s Nutritionals ingredients arm reached EUR642m, up 12.2%. The division’s EBITA grew 11.6% to EUR64.4m.
EBITA from the joint ventures and associates in Glanbia’s continuing operations jumped 84.8% to EUR32.9m. Revenue grew 23.1% to EUR475.7m.
Glanbia said its Nutritionals ingredients arm and its joint ventures were “the main drivers of growth” in the first half.
It added: “We believe second-half earnings progression will also be driven by Glanbia Performance Nutrition, where good organic growth is expected for the remainder of the year.”
The company said total net cash proceeds from the sale of 60% Dairy Ireland and related assets is expected to exceed EUR200m, with EUR112m received by Glanbia prior to the end of the fiscal first half and is included in this financial statement. The full proceeds are expected by 31 October.
Glanbia said it expects growth to be more evenly balanced in 2017 between nutritionals and performance nutrition, and continue to be driven by value-added products from Nutritional Solutions.