Glanbia lowers guidance as earnings fall
Glanbia has lowered its full year guidance after reporting an 11pc decline in adjusted earnings per share in the six months to 29 June.
The Kilkenny-headquartered group now expects adjusted earnings per share in the range of 88-92cent. Compared to last year, on a constant currency basis, this would be a decline of between 3pc-7pc.
The decline is being driven by a revised outlook for its performance nutrition (GPN) business.
The GPN arm expects momentum to “increase significantly” in the second half of 2019, however Glanbia said some of the global trade related challenges in certain markets seen in the first half of the year are expected to continue, therefore reducing the result in GPN for the year.
Overall earnings before interest, tax, and amortisation (EBITA) fell 15pc year-on-year in constant currency to €111.4m, according to interim results from the group.
Performance nutrition EBITA declined by 30.2pc in constant currency in the six months to 29 June.
However, group revenue was up 12pc year-on-year to €1.76bn. This was driven by volume growth of 1.6pc, price decline of 0.2pc and acquisitions of 10.6pc.
The group’s Joint Ventures share of profit after tax was €26.8m, up €9m on prior half year.
Siobhán Talbot, Glanbia MD, said: "Glanbia Performance Nutrition ("GPN") had a disappointing first half reflecting a number of factors including, business seasonality, consumer channel shift in Europe and difficult global trade dynamics in key international markets.”
“Overall while we have positive momentum across many parts of the group, this has increased our caution for the remainder of the year. For full year 2019 Glanbia now expects to deliver adjusted earnings per share on a reported basis of between 88 cent to 92 cent assuming foreign exchange rates remain at current levels."