Glanbia shares in the doldrums as it lowers 2019 outlook
Glanbia shares fell by 15pc to lows of €11.80 today as it lowered its full-year guidance after reporting an 11pc decline in adjusted earnings per share in the six months to 29 June.
Shares in Glanbia are now back some 36pc since March highs of almost €19.
The decline is being driven by a revised outlook for its performance nutrition (GPN) business.
Siobhán Talbot, Group Managing Director, said the GPN performance reflected a number of factors including, business seasonality, consumer channel shift in Europe and difficult global trade dynamics in key international markets.
The GPN arm expects momentum to “increase significantly” in the second half of 2019, however, Glanbia said some of the global trade-related challenges in certain markets seen in the first half of the year are expected to continue, therefore reducing the result in GPN for the year.
The Kilkenny-headquartered group now expects adjusted earnings per share in the range of 88-92cent. Compared to last year, on a constant currency basis, this would be a decline of between 3pc-7pc.
Overall earnings before interest, tax, and amortisation (EBITA) fell 15pc year-on-year in constant currency to €111.4m, according to interim results from the group.
Performance nutrition EBITA declined by 30.2pc in constant currency in the six months to 29 June.
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