Glanbia total group revenue falls by 2.5%
Glanbia total group revenue fell by 2.5% in the first quarter sales. The nutritional group said the fall was mainly due to declines in its Global Ingredients sector where the falling milk price has been taking its toll.
Glanbia said its Global Performance Nutrition division performed particularly well and continues to expect its full-year adjusted earnings per share to grow between 8 and 10 percent.
“The outlook for the remainder of 2016 is positive and we reiterate our full year guidance of adjusted earnings per share growth of 8% to 10% on a constant currency basis,” commented the company’s group managing director Siobhán Talbot.
Breaking down its divisions, Glanbia said its Performance Nutrition division saw a 5.6% increase in revenues. It said this was driven by a 10.1% increase from acquisitions and a 2% rise in volumes which was offset by a 6.5% price decrease.
“The full year 2016 outlook for Glanbia Performance Nutrition is positive with like for like branded revenue growth expected to be the mid single digit range,” the company stated.
Its Global Ingredients division saw revenues fall by 5.2% in the first three months of the year. While volumes rose by 1.5%, this was offset by continued challenges in the dairy markets which caused price declines of 6.7%.
Glanbia said that its Dairy Ireland division saw a satisfactory performance in the first quarter. Revenues fell by 6.2% due to weather related volume falls of 3% along with a price decline of 3.6%.
“The full year 2016 outlook for Dairy Ireland is positive with further EBITA margin progression expected on flat revenues versus 2015. This improved performance is driven by innovation, cost control and returns from strategic investments made in prior years,” the company stated.
