Glanbia share price sours despite growth
SHARES in Glanbia fell 8pc in trading yesterday as the company reported growth of 6.7pc in the first nine months of 2018.
The performance was driven by good demand across Glanbia Performance Nutrition and Glanbia Nutritionals, according to a trading update.
Increased demand but pricing declines during the period affected performance. "The year is progressing as planned," managing director Siobhán Talbot said.
"We reiterate our full-year guidance of 5pc to 8pc growth in adjusted earnings per share, in constant currency, for the continuing group in 2018."
In the nine months to September 29, wholly owned revenue from continuing operations increased 3.7pc in constant currency. However on a reported basis, revenue decreased by 2.6pc due to currency fluctuations.
Roland French, analyst at Davy Stockbrokers, said that the financial year is "tracking to plan for Glanbia".
"Reward for continued investment in brands, technology and people is evident by impressive organic volume growth across core platforms," Mr French said.
"As such, the business is on course to exit financial year 2018 with strengthening momentum," he added.
Last month the group announced plans to buy Slimfast for $350m (€302m).
The price for the loss-making business is slightly below the $400m (€345m) speculated figure that was placed on SlimFast when its current owners - Kainos Capital and Unilever - put it up for sale at the start of the year.