Glanbia results in line but shares fall
Investment in brands, and a competitive US environment for Glanbia's performance nutrition division, spurred a 7.3pc decline to €123.7m in earnings before interest, tax and amortisation (EBITA) at the group's wholly-owned operations during the first half of the year.
But chief executive Siobhan Talbot said the performance was in line with expectations and reiterated guidance for the full year. The reported decline in profits, when currency volatility was included, was 16.6pc.
Shares in the firm fell as much as 5.4pc in Dublin. "People take a perspective, but we're very confident that we will grow by 5pc to 8pc [in pro-forma adjusted earnings per share] for the full year," she told the Irish Independent. Revenue at wholly-owned businesses was 3.6pc higher on a constant currency basis at €1.1bn, but down 6.2pc on a reported basis.
Last year, Glanbia finalised a deal that saw it sell a 60pc stake in a joint venture called Dairy Ireland to Glanbia Co-Op. The co-op is the single largest shareholder in Glanbia plc. Dairy Ireland includes brands such as Avonmore and Kilmeaden.
Glanbia also has joint ventures in cheese-making activities in the US and Europe.
The group's pro-forma share of joint venture profit after tax from continuing operations fell almost a third to €17.8m in the first half of the year.
At its performance nutrition unit, revenue rose 4.9pc to €519.6m on a constant currency basis, while its EBITA was 16.4pc lower at €63.3m.