Glanbia Revenue Rises, Led By Nutritionals Business And SlimFast Buy

LONDON (Alliance News) - Irish nutrition products maker Glanbia PLC on Wednesday said its revenue ...

Alliance News 24 April, 2019 | 9:35AM
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LONDON (Alliance News) - Irish nutrition products maker Glanbia PLC on Wednesday said its revenue increased in the first quarter of 2019 after a particularly strong performance from its Glanbia Nutritionals business and SlimFast acquisition.

Shares in Glanbia were down 6.0% at EUR16.45 in morning trade in London.

Glanbia said its wholly owned revenue was up 8.4% at constant currency for the three months to March 30. Of this, 1.4% was from volume growth and 9.7% was from acquisitions, offset by a 2.7% price decline.

Acquisitions included weight loss brand SlimFast, for which Glanbia paid USD350 million in November 2018. Glanbia also completed its USD89 million cash acquisition of Watson LLC and Polymer Films LLC, collectively known as Watson, at the end of February.

"Glanbia grew revenues by 8.4%, constant currency, in the first quarter of 2019 underpinned by growth in both Glanbia Nutritionals and Glanbia Performance Nutrition in the period. Glanbia Nutritionals was the main driver of revenue growth with a good performance in particular from the Nutritional Solutions business. Glanbia Performance Nutrition revenue growth in the first quarter was driven by a strong performance from the recently acquired SlimFast brand," said Glanbia Managing Director Siobhan Talbot.

On a reported basis, revenue was up 16% as it benefited from a stronger dollar against the euro, its reporting currency.

Glanbia Performance Nutrition posted revenue growth of 4.9% at constant currency, with the addition of SlimFast providing 25% growth, offset by a 17% decline in volume and a price decline of 3.4%.

Glanbia Nutritionals revenue was up 10% on a constant currency basis, led by an 11% increase in volume but offset by a 2.4% decline in price and a 1.6% addition from the Watson acquisition.

Watson is a US-based non-dairy ingredient company and has been integrated into Glania's Nutritional Solutions business within Glanbia Nutritionals. The deal is expected to be marginally accretive to earnings per share in 2019.

Glanbia also announced that it is appointing the chair of both soft drink maker Britvic PLC and petroleum firm Vivo Energy PLC to its board as an independent non-executive director.

John Daly, who will join Glanbia on Wednesday next week, also is a member of the board at security company G4S PLC but will retire from that board on May 16.

Glanbia's net debt on March 30 was EUR809.8 million, a rise of EUR424.7 million from its net debt the year before. This was a consequence of its SlimFast and Watson acquisitions.

In 2019 as a whole, Glanbia is guiding for adjusted earnings per share growth from the continuing group of between 5% and 8% at constant currency. Provided foreign exchange rates are in line with the first quarter, Glanbia's reported result for 2019 should be 3% above the constant currency result, it said.

"Our strategy remains on track, and we reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, in 2019, with growth to be delivered in the second half of the year," said Talbot.

By Anna Farley; annafarley@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar Rating
Glanbia PLC 15.68 -
Glanbia PLC 15.73 -
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