Earnings fall at Glanbia, despite increase in revenue
Earnings before interest, tax and amortisation at Glanbia fell by 7.3pc year-on-year in constant currency to €123.7m in the six months to June 30.
During the period revenue at the group increased 3.6pc to in constant currency to €1.1bn, however it was down 6.2pc in reported currency.
Meanwhile, total group profit (after discontinued activities and exceptional items) for the period was €98.2m, down €16.7m on prior half year.
Glanbia's pro-forma share of joint ventures profit after tax from continuing operations decreased by €8.2m to €17.8m, according to interim results from the group.
The group described the performance as being “in line with expectations.”
“We continue to drive volume momentum with 5.7pc growth in the first half and reiterate guidance for full year volume growth in the key portfolios of Glanbia Performance Nutrition and Glanbia Nutritional Solutions in the mid-to-high single digit range,” Siobhán Talbot, Group MD, said.
“We expect margins for the full year to be similar to 2017; we prioritised investment in our brands and operational infrastructure in the first half in advance of input cost reductions which are materialising as expected in the second half of the year."
Looking forward, Glanbia reiterated its full year 2018 guidance of 5pc to 8pc growth in pro-forma adjusted earnings per share from continuing operations, in constant currency.
Glanbia’s Performance Nutrition business revenue growth of 4.9pc on a constant currency (down 4.4pc in reported), while its earnings before interest, tax and amortisation declined by 16.4pc on a constant currency basis (down 24.6pc on a reported basis).
Meanwhile its Nutritionals business reported revenue growth of 2.4pc on a constant currency basis, down 7.8pc on a reported basis.
Earnings before interest, tax and amortisation at the Nutritionals business experienced growth of 4.5pc constant currency, however it was down 6.2pc on a reported basis.