Glanbia Faces Revenue Dip Amid Dairy Market Challenges
Source: The DairyNews
Glanbia, the Irish food group, reported a revenue decrease of over 5% in the first quarter of the year, with a significant 6.9% drop in prices, primarily due to declines in the dairy market.
Despite these challenges, the company experienced a 1.5% increase in volume, aligning with its expectations for the period.
In the detailed interim management statement for the first quarter ending March 30th, Glanbia's wholly-owned units saw a 5.4% year-on-year decrease in revenue. The Glanbia Performance Nutrition (GPN) division experienced a nearly 1.9% like-for-like revenue decline, despite a 1.4% growth in volume, hampered by a 3.3% fall in prices, which the company attributed mainly to promotional activities. Specifically, revenue in the Americas unit of GPN fell by 5.1%, although there was growth in performance nutrition and lifestyle sectors, counterbalanced by a decrease in weight management. Conversely, the international division of GPN saw a revenue increase of 4.7%, supported by strong volume growth.
The Glanbia Nutritional Solutions (NS) sector also faced difficulties, with an 8.5% revenue drop, where a 10.2% price decline overshadowed a 1.7% increase in volume. Revenue in this division specifically decreased by 1.7% on a like-for-like basis, despite a 3.8% rise in volume, as a 5.5% reduction in prices offset gains.
Hugh McGuire, Chief Executive of Glanbia, expressed satisfaction with the company's performance in the challenging environment, highlighting strong demand for its Better Nutrition brands. McGuire also noted the strategic acquisition of Flavor Producers, a move aimed at expanding Glanbia's presence in the natural and organic flavors market, which aligns with long-term consumer trends.
Looking ahead, Glanbia remains optimistic, reiterating its full-year guidance of 5% to 8% growth in adjusted earnings per share, anticipated to be driven by robust operational performance across both its GPN and NS segments.
In addition to operational strategies, Glanbia is actively engaging in shareholder return initiatives, with a €100 million share buyback program underway. To date, nearly €30 million of the initial €50 million tranche has been acquired.
In the detailed interim management statement for the first quarter ending March 30th, Glanbia's wholly-owned units saw a 5.4% year-on-year decrease in revenue. The Glanbia Performance Nutrition (GPN) division experienced a nearly 1.9% like-for-like revenue decline, despite a 1.4% growth in volume, hampered by a 3.3% fall in prices, which the company attributed mainly to promotional activities. Specifically, revenue in the Americas unit of GPN fell by 5.1%, although there was growth in performance nutrition and lifestyle sectors, counterbalanced by a decrease in weight management. Conversely, the international division of GPN saw a revenue increase of 4.7%, supported by strong volume growth.
The Glanbia Nutritional Solutions (NS) sector also faced difficulties, with an 8.5% revenue drop, where a 10.2% price decline overshadowed a 1.7% increase in volume. Revenue in this division specifically decreased by 1.7% on a like-for-like basis, despite a 3.8% rise in volume, as a 5.5% reduction in prices offset gains.
Hugh McGuire, Chief Executive of Glanbia, expressed satisfaction with the company's performance in the challenging environment, highlighting strong demand for its Better Nutrition brands. McGuire also noted the strategic acquisition of Flavor Producers, a move aimed at expanding Glanbia's presence in the natural and organic flavors market, which aligns with long-term consumer trends.
Looking ahead, Glanbia remains optimistic, reiterating its full-year guidance of 5% to 8% growth in adjusted earnings per share, anticipated to be driven by robust operational performance across both its GPN and NS segments.
In addition to operational strategies, Glanbia is actively engaging in shareholder return initiatives, with a €100 million share buyback program underway. To date, nearly €30 million of the initial €50 million tranche has been acquired.
