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Glanbia pauses M&A but keeps its dividend

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Glanbia CEO Siobhán Talbot

Glanbia CEO Siobhán Talbot

Glanbia CEO Siobhán Talbot

GLANBIA has paused its mergers and acquisition activity, but shareholders will still benefit from a €47.2m dividend payout tomorrow despite the impact of the global pandemic.

CEO Siobhán Talbot also told analysts yesterday, as the company released an interim management statement to coincide with its annual general meeting, that Glanbia will emerge from the crisis with "ambition for growth".

She also predicted that there will be pent-up demand after the crisis from consumers keen to shed weight which they may put on from weeks of comfort eating.

The company, whose divisions include Glanbia performance nutrition (GPN), and nutritionals and cheese manufacture, said that revenues were 17pc higher in the first quarter on a constant currency basis.

It said it saw good growth in its performance nutrition unit, which makes a range of products, from protein smoothies to energy bars, and owns brands including SlimFast and Optimum Nutrition, and also in its nutritionals division.

The latter makes dairy and non-dairy ingredients used in a range of products such as baby formula.

Earlier this year, Glanbia had signalled that it could spend about €140m on a share buyback in coming months as the group completes a massive product cull within its performance nutrition unit. It has also ditched its previous financial guidance for the year, given the uncertainty caused by the Covid-19 pandemic.

Irish Independent