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Glanbia hit by Covid crisis, but eyes long-term lift on health focus

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Glanbia CEO Siobhan Talbot

Glanbia CEO Siobhan Talbot

Glanbia CEO Siobhan Talbot

Glanbia chief executive Siobhan Talbot has insisted the group will benefit from an increased focus by consumers on well-being, even as the company's profits were hammered during the second quarter as lockdowns played havoc with key markets.

Releasing first-half results yesterday, Glanbia said that its earnings before interest, tax and amortisation (Ebita) slumped 25.4pc on a constant currency basis to €85m in the period.

While total revenue edged 2.3pc higher to €1.83bn, that masked a steep fall at its key Glanbia Performance Nutrition (GPN) arm.

GPN saw its revenue decline 15.6pc to €532.4m, while its Ebita tumbled 58.2pc to €19.6m. The division owns a range of health brands such as SlimFast and Amazing Grass.

In recent weeks, the GPN revenue profile has improved significantly, however, as lockdowns eased. Margins in the business were also hit and Glanbia has expanded its transformation programme for the division.

Glanbia's Nutritional Solutions arm fared better, with revenue up 12pc at €1.3bn. Its Ebita slipped 0.9pc on a constant currency basis to €65.4m.

The group also announced yesterday that it has agreed to buy Canadian flavours business Foodarom for C$60m (€38.4m), plus contingent consideration.

Ms Talbot told the Irish Independent that Glanbia has seen increased interest from clients for products that include immune system boosting capabilities.

She said the company has a number of dairy and non-dairy based immune-enhancing products.

"We work with customers where they may want to enhance the immunity properties of powders, of beverages," she said. "We work for example with customers who want to something in a gummy format, which is very popular for children and adults."

Glanbia also benefited in the second half to the tune of €3.5m from a legal settlement. Ms Talbot declined to reveal details of the case, but said it was connected to a "pension related matter". It's described in the results as a "legacy case".

"The settlement is bound by a confidentiality clause and we cannot comment further," added a spokesperson.

Irish Independent