Irish dairy and ingredients group Glanbia has booked an increase in sales in the first nine months of its financial year.
Glanbia revealed sales were up 14% in the nine months ended 5 October. The company pointed to nine points of volume growth and five points from price hikes with the impact of acquisitions and disposals largely offsetting one another.
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The group’s global performance nutrition saw revenues increase by 19%, mainly due to volume growth as pricing was largely unchanged in the period.
Glanbia’s Irish dairy arm reported a 9% increase in revenue on the back of a seven-point rise in volumes. Price hikes contributed four percentage points, although the end of Glanbia’s licence to produce Yoplait products hit sales.
However, Glanbia said the outlook for its Dairy Ireland arm for the full year was “challenging”, primarily as a result of the “under-performance” within its consumer products business.
The consumer products division experienced milk input costs that rose to “historically high levels”, the group said. The division recently announced a further phase of rationalisation to improve its competitiveness in the domestic market, including overall cost base reduction through the redesign of its supply network and restructuring of head office functions.
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By GlobalDataHowever, Glanbia said the outlook for the company is “positive” and expects to deliver around 10% growth in adjusted earnings per share on a constant currency basis, at the upper end of its previous guidance.
