Acquisitions drive increase in revenue at Glanbia
Revenue at nutrition group Glanbia jumped by almost 17pc in the first nine months of 2019 on the back of acquisitions.
During the period, businesses acquired by Glanbia contributed 11.3pc to the growth in revenue, while price and volume were up 3.2pc and 2.4pc respectively, according to a trading update from the group.
In the group’s performance nutrition (GNP) division, turnover increased by 16.5pc, with the SlimFast acquisition adding 25.8pc. This offset a price decline of 1.4pc and a volume decline of 7.9pc.
Glanbia said that a price increased in the United States had been “successfully implemented” in the three months to 30 September.
The weakness in volume in this division was due to challenging conditions in Brazil, Middle East and India, the company said.
The Kilkenny-headquartered firm added that a series of actions were underway to address these issues, which will continue into next year.
Meanwhile, the Nutritional Solutions (NS) business recorded growth in revenue of 25.4pc, again assisted by the Watson acquisition, which added 12.2pc.
Volume and price in this arm of Glanbia increased by 9.3pc and 3.9pc respectively, on the back of good growth across dairy and non-dairy solutions globally.
Siobhán Talbot, MD of Glanbia, said that while the company is “very pleased” with the performance of the SlimFast acquisition in the GPN division, “our like-for-like volume performance is disappointing”.
“We reiterate our full year guidance of adjusted earnings per share on a reported basis of being in a range of 88 cent to 92 cent, assuming foreign exchange rates remain at current levels," Ms Talbot said.