Glanbia Retains Annual Earnings Guidance Amid 17% Revenue Growth

(Alliance News) - Glanbia PLC on Thursday reiterated its annual guidance and said that a strong ...

Alliance News 31 October, 2019 | 10:03AM
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(Alliance News) - Glanbia PLC on Thursday reiterated its annual guidance and said that a strong performance from N\its utritional Solutions business and contribution from recent acquisitions resulted in a 17% year-on-year revenue growth for the first nine months of 2019.

The Kilkenny, Ireland-based dairy and non-dairy ingredients producer said acquisitions added 11% to revenue growth for the nine months to September 30, with volume and price contributing 2.4% and 3.2%, respectively.

The Nutritional Solutions business recorded 25% revenue growth, with the Watson acquisition adding 12%, volume up 9.3% and price up 3.9%. Glanbia completed its USD89 million cash acquisition of US-based non-dairy ingredient company Watson LLC and Polymer Films LLC, collectively known as Watson, at the end of February.

The second Performance Nutrition division saw 17% rise in nine-month revenue with the SlimFast acquisition adding 26% offset by a price decline of 1.4% and a volume decline of 7.9%. Weight loss brand SlimFast was bought by Glanbia for USD350 million in November 2018.

"Glanbia Performance Nutrition like-for-like volumes were weaker than expected in the third quarter as key non-US markets in Brazil, Middle East and India remain challenging. A series of actions are underway to address these issues which will continue into 2020," the company said.

Glanbia reiterated its 2019 guidance of adjusted earnings per share on a reported basis being in a range of 88 euro cents to 92 cents, assuming foreign exchange rates remain at current levels.

The company expects Nutritional Solutions and US Cheese business to deliver good revenue growth along with a positive contribution from the Watson acquisition.

Shares were 12% lower on Thursday morning in London at EUR9.75 each.

By Tapan Panchal; tapanpanchal@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Glanbia PLC 8.42 EUR -0.36 -
Glanbia PLC 8.40 EUR -1.06 -

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