Glanbia revenues jump due to strong dollar
Irish food giant Glanbia saw its revenue increase by 10.5pc in the three-month period to April 4, the company said in an interim management statement published yesterday.
However, when currency translations were removed wholly owned revenue fell by 3.6pc compared to the same period in 2014.
This was a result of lower market prices for US cheese and dairy ingredients.
The firm said that on a reported basis, its performance benefited from the positive translation effect of a strong US dollar against the euro.
The company generates a significant portion of its earnings in dollars and reports in euro and constant currency reporting is used to get rid of the translational effect of foreign exchange on its results.
Total group revenue, including joint ventures and associates, was up 3.7pc on a reported basis but down 8.8pc on a constant currency basis.
Group managing director Siobhán Talbot said: "On a reported basis performance benefited from the positive translation effect of a strong US dollar while on a constant currency basis the group delivered a satisfactory performance against a high comparator in 2014. We reiterate our full year guidance of adjusted earnings per share growth of 9pc to 11pc on a constant currency basis with a reported result of over 20pc if exchange rates remain at current levels for the rest of the year."
The international food giant said it could see earnings growth of up to 20pc in this financial year if the dollar remains at its current relatively high levels versus the euro.
On a constant currency basis earnings growth is likely to be close to between 9pc and 11pc.
A research note from Goodbody stockbrokers said that the result was "expected".
It noted that net debt was €616m, which compared with €480m at the same period last year.
Goodbody's said this leaves Glanbia "in a good position to fund any bolt-on acquisitions or new investment projects".