In a trading statement released on Wednesday morning, Glanbia plc has reported first quarter revenue growth of 4.8% (constant currency) for the three-month period to the end of March 2018. The company also reiterated its full-year guidance to deliver earnings per share growth of 5% to 8% for 2018.

Glanbia released the trading update ahead of its 2018 annual general meeting (AGM), which will be held this morning at 11am in the Lyrath Hotel just outside Kilkenny. Siobhan Talbot and senior management at Glanbia are likely to face a heated reception at today’s AGM, with many farmer suppliers still reeling from a 3c/litre cut in the group’s base milk price for February.

A further cut of a 2c/litre was announced for the base price for March milk, although this was tempered somewhat by a 3c/litre top-up support payment from Glanbia co-op. It’s been a difficult spring for many of Glanbia’s farmer suppliers. Senior management in Glanbia could be in for a testing morning when they face their farmer shareholders in Kilkenny.

Trading update

In this morning’s trading update, Glanbia said it had achieved sales volume growth of more than 7% across its two main divisions; performance nutrition and nutritionals. However, product pricing declined by 6% in the quarter, reflecting weaker dairy markets and investment in its performance nutrition brands.

Commenting on the results, Glanbia managing director Siobhán Talbot said the group was expecting stronger growth in the second half of 2018.

“The year has started as planned and we reiterate our full-year guidance of 5% to 8% growth in adjusted earnings per share in 2018, with growth to be delivered in the second half of the year,” said Talbot.