Glanbia and Kerry stick to guidance for this year
Dairy giant Glanbia has reaffirmed its 2016 guidance despite revenue from its wholly-owned businesses falling 1.9pc on a constant currency basis in the first three months of the year. On actual exchange rates, the figure was 0.8pc lower.
The company, headed by chief executive Siobhan Talbot said that the revenue figure reflected volume growth of 0.5pc and a contribution from acquisitions of 3.4pc - all of which was offset by price declines of 5.8pc due to depressed dairy prices.
Total group revenue, which includes joint ventures and associates, was 2.5pc lower.
Ms Talbot said that the group's performance nutrition and global ingredients units both delivered volume growth in the first quarter.
"Our on-going strategy of building a business to deliver better nutrition via consumer brands and high-quality ingredients has mitigated the impact of weak dairy markets," she said.
She confirmed that the group expects to generate earnings per share growth of between 8pc and 10pc on a constant currency basis this year.
Glanbia's Performance Nutrition division posted a 5.6pc increase in revenues in the first quarter, which included a 10.1pc increase from acquisitions and a 2pc increase in volume, which were offset by a 6.5pc price decrease.
"Overall volume growth was offset by challenges in certain non-US markets associated with a strong US dollar and geo-political issues as well as further declines in contract volumes," according to the company.
It added that US-based healthy snack maker ThinkThin, which Glanbia acquired last year for over €200m, performed well in the period.
Revenue at its global ingredients unit fell 5.2pc in the first quarter, as "continued challenges in dairy markets" saw prices decline 6.7pc.
Meanwhile, global ingredients maker Kerry Group reiterated its full-year guidance of generating adjusted earnings per share growth of between 6pc and 10pc this year, taking into account a 4pc currency headwind at current exchange rates.
The company, headed by chief executive Stan McCarthy, held its annual general meeting in Kerry yesterday and said that it maintained "good business momentum" in the first quarter. Business volumes were 2.9pc higher.
"While overall market conditions remain challenging, Kerry has sustained a solid innovation pipeline in response to customer requirements and consumer demand," it said.