Glanbia 'progressing as planned' as group reports volume growth of over 6pc

Glanbia managing director Siobhán Talbot has said that the year is “progressing as planned” after the group reported volume growth of 6.7pc in the first nine months of 2018.

The performance was driven by good demand across Glanbia Performance Nutrition (“GPN”) and Glanbia Nutritionals (“GN”), the company said in a trading update today.

Pricing declined by 4.1pc during the period, largely as a result of lower year-on-year dairy markets.

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This price decline is also benefitting the group’s input costs, with Ms Talbot adding that she expects full year margins in GPN and GN to be in line with last year.

“We reiterate our full year guidance of 5pc to 8pc growth in adjusted earnings per share, constant currency, for the continuing group in 2018,” Ms Talbot said.           

In the nine months to 29 September, wholly owned revenue from continuing operations increased 3.7pc in constant currency. However on a reported basis, revenue decreased by 2.6pc due to currency fluctuations.

Revenue increase, on a constant currency basis, was driven by volume growth of 6.7pc and acquisitions which delivered 1.1pc. 

GPN delivered revenue growth of 4.7pc in the first nine months of 2018. This was driven by volume growth of 6.7pc, while the Body & Fit acquisition delivered revenue growth of 2.4pc.

Meanwhile, Glanbia Nutritionals delivered revenue growth of 3pc.

Glanbia’s net debt at 29 September 2018 was €398m, a decrease of €84m when compared with the end of the third quarter of 2017.  This improvement was primarily driven by good cash conversion, the group said.

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