Business Irish

Monday 19 August 2019

Global Performance Nutrition drives Glanbia revenue up 9pc

Siobhan Talbot Photo: Dylan Vaughan
Siobhan Talbot Photo: Dylan Vaughan

Michael Cogley

The sports nutrition arm of Glanbia, Global Performance Nutrition (GPN), has helped its parent company to a 9pc surge in its revenue in the year to date.

Revenues increased 3.8pc in GPN which was driven by an 8.8pc increase from acquisitions offset by a 1.1pc price decrease and a 3.9pc volume decline related to lower contract manufacturing business and specific challenges in certain markets.

Goodbody Stockbrokers analyst Liam Igoe said that the company is performing well on top of the fact that current currency headwinds are in favour of Glanbia.

"The headline numbers are benefiting from the currency which has gone the right way. If you're looking at overall constant currency earnings growth of around 10pc on an underlying basis, when you throw currency in on top of that it would be more 25pc in the current year.

"In the case of GPN they're doing very well in the US, where they export those products out of the US they will be exporting into weaker currency zones, so that has an issue in terms of pricing and they price the products to remain competitive," Mr Igoe said.

In an announcement to shareholders, group managing director Siobhán Talbot revealed that the company is in talks with its US join venture partner, South West Cheese, to expand its New Mexico facility.

"In line with our growth agenda, I am pleased to announce that we are in advanced discussions, with our US joint venture partner at South West Cheese, to expand cheese and whey production at our facility in New Mexico by 25pc. This project is expected to take over two years to complete at an approximate cost of $140m," Ms Talbot said.

The company's net debt stood at €567m on October 3 which represents a year on year reduction of €84m.

The company aim to deliver adjusted earnings per share growth of between 9pc and 11pc in 2015 on a constant currency basis.

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