FDBusiness.com

Driven by its Performance Nutrition business, Glanbia, the global nutrition group, has delivered a solid performance for the first half of 2016. Glanbia’s wholly owned businesses posted a 0.4% rise in revenue at constant currency (up 0.2% reported) to €1.435 billion with EBITA at €157.4 million, up 13.7% constant currency (up 13.6% reported). Wholly owned EBITA margin advanced 130 bps (constant currency and reported) to 11.0%.

Glanbia’s Performance Nutrition (GPN) business increased revenues by 12.0% to €505.3 million, reflecting an 8.0% improvement in volume and a 10.7% revenue contribution from the thinkThin acquisition offset by a 6.7% decline in price, due to promotional investment. EBITA at €81.7 million increased by 35.0% on prior half year on a constant currency basis (up 34.6% reported).

Glanbia’s Dairy Ireland business had a satisfactory performance in the first half of 2016. Revenues decreased 3.3% reflecting a 1.1% increase in volumes, a 4.9% decline in price and a 0.5% revenue contribution from acquisitions. A 30 bps improvement in margin drove an increase in EBITA of 1.1% versus the prior half year to €17.7 million.

Total group revenue for the period, including the group’s share of Joint Ventures & Associates, was €1.837 billion, a decrease of 1.7% constant currency (down 2.1% reported). Total group EBITA was €176.5 million, up 11.4% constant currency (up 11.2% reported). The EBITA margin was 9.6%, up 110 bps, constant currency and reported. Adjusted earnings per share for the half year were 44.87 cent, up 10.8%, constant currency (up 10.5% reported).

Siobhán Talbot (pictured), group managing director of Glanbia, comments: “Glanbia delivered a strong performance in the first six months of 2016 driven by Glanbia Performance Nutrition. Total Group earnings before interest, tax and amortisation for the half year grew by over 11%. 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.”

Glanbia’s total investment in capital expenditure was €41.7 million in the first half of 2016, of which €27.8 million was strategic investment reflecting the on-going focus on the organic growth potential of the business. Key strategic projects undertaken in the period were the investments in value-added ingredient processing technologies at the Glanbia Nutritionals sites in Idaho and California, USA.