Volume growth but declining revenue for Glanbia in Q1

An Interim Management Statement issued this week by Glanbia plc in advance of the their AGM on Wednesday (May 1st), covering the period January-March 2024 inclusive (quarter 1), indicates that the group’s performance was in line with expectations.

Some of the key highlights include volume growth of 1.5% offset by a price decline of -6.9%, driven largely by dairy market pricing, resulting in group revenue for the period declining -5.5% on a constant currency and pro-forma basis.

Regarding Glanbia Performance Nutrition, like-for-like revenue declined by -1.9% reflecting volume growth of 1.4% and a price decline of -3.3%. Optimum

Nutrition continues to strengthen its leadership position and delivered strong volume growth in the quarter, supported by increased brand investment.

Like-for-like revenue declined -1.7% on a pro-forma basis in relation to Glanbia Nutritional Solutions, reflecting volume growth of 3.8% and a price decline of -5.5%. Volume trends continue to improve with strong growth in the premix solutions business in the quarter. Pricing decline driven largely by dairy market pricing.

There has been continued progress on the strategic agenda with the acquisition of Flavor Producers, a leading US flavour platform providing flavours and extracts to the food and beverage industries, for $300 million plus potential deferred consideration.

The interim statement, also notes that the €100 million share buyback is on-going, with €29.8 million of €50 million first tranche bought in the year-to-date.

Based on the current market environment and expectations for the remainder of the year, the Group reiterates its guidance and expects to deliver adjusted EPS growth of 5% to 8% constant currency in 2024.

In advance of this week’s AGM, Hugh McGuire, chief executive officer, said that he was “pleased” on the “good performance in the first quarter, which was driven by the continued strong global demand for our Better Nutrition brands and ingredients”.