Glanbia announces plans to increase dividend payments
Glanbia on Wednesday announced plans to “materially increase” its dividend policy, with a target of paying between 25 and 35pc of adjusted earnings per share.
The company plans to pay out 22 cents per share for 2017, an increase of 65pc on the previous year, the company said in a statement.
“This is a sign of the strength of our balance sheet,” Finance Director Mark Garvey told Reuters in an interview.
Glanbia’s earnings per share rose 10.2pc in 2017. This will slow to between 5 and 8pc in 2018, it said, as weak dairy prices and investments affect performance in the first half of the year.
Shares in the firm, a leading supplier of “performance nutrition” protein supplements for body builders, were down 4.8 percent at 0900 GMT despite plans to pay out more in dividends.
The firm’s earnings per share rose 10.2 percent in 2017, on a constant currency basis, which strips out currency volatility. This will slow to between 5 and 8pc in 2018, it said.
Weak dairy prices and investments affect performance in the first half of 2018, the firm said in a statement.
The company will focus on volume driven growth and invest in new acquisitions in 2018 to “secure the firm for the longer term,” Finance Director Mark Garvey said in an interview.