Glanbia Revenue Falls Amid Dairy Price Pressure, Despite Increased Volumes
Source: DairyNews.today
Irish food and nutrition group Glanbia Plc reported a 5.4% drop in first-quarter revenue, attributing the decline to falling dairy prices that offset slight volume gains across its portfolio.
Despite a challenging market, overall performance met company expectations, with volumes rising by 1.5% during the period.
In its latest interim management statement, Glanbia noted that revenue declines were driven primarily by a 6.9% drop in pricing, largely due to pressures in the dairy sector. Glanbia’s Performance Nutrition (GPN) division saw a comparable revenue decrease of 1.9%, where promotional activities contributed to a 3.3% decline in prices, although volume growth of 1.4% partially mitigated the impact.
In the Americas, GPN revenues contracted 5.1%, with gains in performance and lifestyle products offset by declines in weight management. Internationally, however, GPN revenue rose 4.7% due to strong volume growth.
Glanbia Nutritional Solutions (NS) posted a 1.7% revenue drop, impacted by a 5.5% decline in prices, despite a 3.8% volume increase. The Nutritional Solutions division overall saw revenue fall by 8.5%, with prices down by 10.2% and volumes up 1.7%.
CEO Hugh McGuire highlighted the strong performance of Glanbia’s Better Nutrition brands and reaffirmed the company’s growth strategy through acquisitions, citing the recent acquisition of Flavor Producers as a key expansion into natural and organic flavors aligned with evolving consumer trends.
McGuire reiterated the company’s guidance for full-year growth of 5% to 8% in adjusted earnings per share, driven by solid operational performance across GPN and NS. Glanbia also continues its €100 million share buyback initiative, with nearly €30 million of the initial €50 million tranche completed to date.
In its latest interim management statement, Glanbia noted that revenue declines were driven primarily by a 6.9% drop in pricing, largely due to pressures in the dairy sector. Glanbia’s Performance Nutrition (GPN) division saw a comparable revenue decrease of 1.9%, where promotional activities contributed to a 3.3% decline in prices, although volume growth of 1.4% partially mitigated the impact.
In the Americas, GPN revenues contracted 5.1%, with gains in performance and lifestyle products offset by declines in weight management. Internationally, however, GPN revenue rose 4.7% due to strong volume growth.
Glanbia Nutritional Solutions (NS) posted a 1.7% revenue drop, impacted by a 5.5% decline in prices, despite a 3.8% volume increase. The Nutritional Solutions division overall saw revenue fall by 8.5%, with prices down by 10.2% and volumes up 1.7%.
CEO Hugh McGuire highlighted the strong performance of Glanbia’s Better Nutrition brands and reaffirmed the company’s growth strategy through acquisitions, citing the recent acquisition of Flavor Producers as a key expansion into natural and organic flavors aligned with evolving consumer trends.
McGuire reiterated the company’s guidance for full-year growth of 5% to 8% in adjusted earnings per share, driven by solid operational performance across GPN and NS. Glanbia also continues its €100 million share buyback initiative, with nearly €30 million of the initial €50 million tranche completed to date.
