Glanbia performance nutrition unit delivers strong showing

Glanbia performance nutrition unit delivers strong showing

Stronger earnings from Glanbia's performance nutrition unit have bolstered the Ireland-based group's first-half results, enabling the company to reiterate its full-year outlook.

In a filing today (17 August), Glanbia said total group EBITA rose 11.4% to EUR176.5m (US$198.8m). Managing director Siobhán Talbot said growth was "driven" by the performance nutrition unit. Performance nutrition sales increased 11.4% while EBITA rose 34.6%.

In contrast, sales were down at the firm's other businesses, nutritionals and dairy Ireland, dropping 6% and 3.3% respectively. While EBITA at nutritionals fell 3.8% a 30 basis point improvement in margin at dairy Ireland saw the unit report EBITA growth of 1.1%.

"Sales of performance nutrition brands and value-added nutritional ingredients showed good growth in the first half of 2016 delivering on our vision to be a leading nutrition business. Global dairy markets remain weak and continue to be a challenge for parts of the business, however the diversity of the Glanbia portfolio has enabled us to navigate this and we reiterate guidance for the full year of adjusted earnings per share growth of 8% to 10% on a constant currency basis," Talbot said.

On a group-wide basis EBITA margin rose 110 basis points year-on-year as the group shrugged off lower sales due to a reduced contribution from joint venture businesses. Sales on a group-wide basis were down 2.1% to EUR1.83bn. Sales from wholly-owned businesses edged up 0.2%.