Friday 20 April 2018

Glanbia revenue up to €1.9bn as earnings boosted by strong dollar

Glanbia boss Siobhan Talbot
Glanbia boss Siobhan Talbot

Paul O'Donoghue

Irish foods giant Glanbia has seen turnover increase by 4.4pc to just under €1.9bn in the six months to the end of July 4 as the strong dollar helped to boost the company’s earnings.

Although sales were down by 8.4pc on a constant currency basis, total group revenue was €1.87bn for the period, up from €1.8bn for the corresponding period in 2014.

This was mainly due to currency changes, with the dollar being much stronger in the first half of the year in 2015 compared to 2014.

As Glanbia generates a significant proportion of its earnings in US dollars and reports its earnings in euro, this helped to boost the company’s income.

Group earnings before deductions were €158.7m compared to €129.5m in 2014, up by 22.5pc, or 3.5pc on a constant currency basis.

Adjusted earnings per share grew strongly, rising from 32.45 cents to 40.60 cents.

The company’s Global Nutrition business saw revenue increase from €374.6m to €453.5m while earnings jumped from €42.9m to €60.7m.

Revenue at its Global Ingredients division rose to €609.3m from €565.8m.

Glanbia chief executive Siobhán Talbot said: "We are reiterating full year guidance of adjusted earnings per share growth of between 9pc and 11pc, on a constant currency basis.

"Given the strength of the US dollar this is likely to translate to reported adjusted earnings per share growth of circa 25pc for the full year if foreign exchange rates remain at current levels.”

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