Tuesday 26 March 2019

Earnings per share up 9pc at Glanbia, group acquires non-dairy ingredient business for $89m

Glanbia Managing director Siobhán Talbot
Glanbia Managing director Siobhán Talbot
Ellie Donnelly

Ellie Donnelly

Glanbia has reported 9pc growth in adjusted earnings per shares for 2018, according to full year results from the company.

Revenue at the global nutrition group increased by 4pc in constant currency to €2.38bn, while the group’s earnings before interest, taxation, and amortisation (EBITA) of €284.9m was up 5.2pc on the prior year in constant currency.

Shares in the group were up over 10pc in early morning trading.

Total group profit at Glanbia last year was €234m. In 2017 group profit was €329.4m, however this included €98m of net exceptional gains in 2017 relating to a profit on disposal of discontinued operations and a tax credit arising on the reduction of the US federal corporate tax rate.

The group also announced the acquisition of Watson, a US based non-dairy ingredient solutions business, for $89m (€78.65m).

Siobhán Talbot, managing director of Glanbia, described the acquisition as "a highly complementary addition" to the group’s Nutritional Solutions business, that will help broaden the company’s capabilities in the ingredients sector.

In the Glanbia Performance Nutrition ("GPN") business revenue grew by 9.5pc in constant currency, with like-for-like branded volume growth of 9.2pc and EBITA of €173.1m, a 6.7pc increase on prior year.

Meanwhile, in the Glanbia Nutritionals ("GN") division, revenue declined 0.6pc in constant currency and it delivered EBITA of €111.8m, a 3pc increase on prior year in constant currency.

Volume growth in GN Nutritional Solutions was 8.5pc in 2018.

Joint Ventures reported share of profits after tax (before exceptional items) of €45.3m up €2.5m on prior year.

The group’s full year dividend of 24.20 cent is a 10pc increase on prior year.

Siobhán Talbot, managing director at Glanbia, said: "I am pleased to announce 9pc growth in pro-forma adjusted earnings per share, constant currency, for Glanbia for 2018."

"This was largely driven by strong volume growth across our business, in particular in the branded portfolio of GPN and the Nutritional Solutions component of GN." 

"Consumer demand for our brands and nutritional ingredients remains strong underpinned by positive long-term global health and wellness trends."

Elsewhere, and Glanbia announced plans to reorganise the composition of its board of directors this year with the appointment of three new independent non-executive directors to its board.

The reorganised board will be comprised of 16 members; two executive directors; group MD and group finance director.

In addition there will be six independent non-executive directors and eight non-executive directors nominated by Glanbia Co-Op.

On the matter of Brexit, Glanbia said it has been "actively preparing", as far as possible, for a no-deal outcome, and remains very alert to the risks that may crystallise in the coming months.

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