Friday 19 October 2018

Health and fitness brands lift Glanbia as dairy giant 'ambitious' on takeovers

Professional snowboarder Chanelle Sladics, one of the brand ambassadors for Amazing Grass in the United States.
Professional snowboarder Chanelle Sladics, one of the brand ambassadors for Amazing Grass in the United States.
Donal O'Donovan

Donal O'Donovan

Glanbia is "ambitious" to acquire businesses, finance chief Mark Garvey said yesterday,

Analysts at Goodbody Stockbrokers said the Kilkenny-based business has around €400m available for deals, in a research note published yesterday.

Acquisitions are a "very important part of the agenda," Mr Garvey told analysts on an investor call after the company released an interim management statement.

The Irish dairy giant reported a "good performance in the first nine months of 2017" with online sales in the US the key driver of growth. Glanbia reiterated full-year guidance of 7pc to 10pc growth in pro forma adjusted earnings per share.

Group managing director Siobhán Talbot said Glanbia has delivered a good result in the first nine months of 2017 with wholly owned revenue from continuing operations up 6.6pc.

Glanbia Performance Nutrition, which develops and markets products aimed at the health and fitness sector was the main driver of revenue growth, with Glanbia Nutritionals continuing to perform well, she said.

Growth was particularly noted in online and mass channels in the US, Glanbia said.

The outlook for the remainder of 2017 is positive and she reiterated full-year guidance of 7pc to 10pc growth in pro forma adjusted earnings per share.

Glanbia Performance Nutrition saw revenues increase by 9.0pc.

This was driven by a 2.7pc increase in volume, 7.4pc growth from the acquisitions of Amazing Grass, and Body & Fit, offset by a 1.1pc price decrease. Shares were down slightly at €16.555 yesterday.

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