Glanbia has reiterated full-year growth targets of 7% to 10% in adjusted earnings per share (EPS). In a third quarter interim management statement released this Thursday morning, Glanbia said the continued solid performance of its global nutrition business, alongside improved dairy markets, created a positive outlook for the remainder of 2017.
For the nine-month period to the end of September, revenues for Glanbia were up 6.6% on a constant currency basis. This was driven by 2.4% growth in sales volumes, a 0.9% growth in pricing and a 3.3% contribution from recent acquisitions Amazing Grass and Body & Fit.
Siobhán Talbot, Glanbia managing director, said the group delivered a good result in the first nine months of 2017 and the outlook remains positive.
Performance nutrition
Revenues for Glanbia’s performance nutrition division increased 9% in the first nine months of the year. This was driven by 2.7% increase in sales volumes and 7.4% growth from the acquisitions of Amazing Grass and Body & Fit. Glanbia said prices declined 1.1% in the period as a result of brand investment.
The group is expecting full-year EBITA margins to be in the mid-teen range, broadly in line with half-year 2017 levels.
Nutritionals
Glanbia Nutritionals, which comprises the company’s specialised ingredients and US cheese business, delivered nine-month revenue growth of 4.6%. Glanbia said improved dairy markets resulted in price increases of 2.5%, while volume growth exceeded 2%. Glanbia said the full-year outlook for its nutritionals division is good, with revenue and earnings (EBITA) expected to benefit from continued price improvement and volume growth.
Joint ventures
Glanbia completed the sale of 60% of its Dairy Ireland business earlier this year to the new entity known as Glanbia Ireland, which is now recorded as a joint venture in the group’s accounts.
Joint ventures delivered a strong performance for the first nine months of 2017, with revenues increasing close to 34%. The improvement in dairy markets contributed 22% of this growth, while volumes increase 2.3%. The addition of Glanbia Ireland as a joint venture boosted revenues by 9.4%.
Profits up 23% at Glanbia Ingredients Ireland