Glanbia reports 11% growth in adjusted earnings per share in the first half of 2013

Glanbia plc, the global performance nutrition and ingredients group, announced its results for the six months ended June 29th 2013, this morning.

Highlights include:

• Good first half operating and financial performance delivered 13% revenue growth, split 8% volume growth and 5% price growth. Adjusted EPS grew 11% growth in on a constant currency basis;
• Global Performance Nutrition continued to outpace market growth rates delivering a 14% increase in revenue, 20% growth in EBITA and a 50 basis points improvement in EBITA margin to 10.5%;
• Global Ingredients also delivered a good performance. Revenue increased 17% and EBITA grew 8%. EBITA margin declined 90 basis points to 10.7% mainly due to lower margins, as expected, in the Ingredient Technologies business unit;
• Dairy Ireland’s performance was impacted by a very difficult first half in Consumer Products and EBITA and EBITA margin were lower than prior year;
• The Group’s two major strategic Joint Ventures & Associates, Glanbia Ingredients Ireland and Southwest Cheese in the USA had a steady first half overall;
• The full year outlook for the Group remains positive with forecast growth in adjusted EPS of between 8% and 10%, on a constant currency basis.

Commenting today John Moloney, group managing director, said:“The Group’s first half performance was driven by Global Performance Nutrition and Global Ingredients. These two business segments now represent over 70% of Group EBITA and are our core platforms for future growth. We expect little change in the external operating environment in the second half and with clear challenges remaining in Dairy Ireland we are maintaining our 2013 full year guidance of adjusted earnings per share growth of between 8% and 10%, on a constant currency basis.”

He added: “Our recently announced management changes put in place an excellent team to continue to drive the business forward and to evolve the long term strategy that will deliver the next phase of growth. Overall, Glanbia is in a strong position to capitalise on its unique portfolio of global businesses, development opportunities and strong balance sheet.”

For the rest of 2013, the outlook for Glanbia is positive despite what the company calls ‘some challenges for the remainder of the year in the Dairy Ireland business segment’.