Global nutrition group Glanbia has today upgraded its full year outlook for adjusted earnings per share after it reported good momentum during the third quarter.
In a third quarter interim management statement, Glanbia said it now expects growth in its full year adjusted earnings per share of between 17% and 20% on a constant currency basis.
It noted that its portfolio of better nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein.
In today's trading update, Glanbia said its group revenue for the third quarter declined by 9.1% on a constant currency basis with growth in the Glanbia Performance Nutrition division offset by a decline in its Glanbia Nutritionals division.
Glanbia said that like-for-like branded revenue increased by 3% in its Glanbia Performance Nutrition, which reflected a price increase of 8.9% and a volume decline of 5.9%.
It noted that the strong Optimum Nutrition brand trends continued with good volume growth in the quarter and 12 week US consumption growth of 9.5%.
Meanwhile, like-for-like revenue declined by 14% in its Glanbia Nutritionals - Nutritional Solutions division, which it said came on the back of a volume decline of 6.4% and a price decline of 7.6%.
Glanbia said the volume decline was driven by supply chain rebalancing earlier in the year with volume growth delivered in the third quarter.
The pricing decline was driven by dairy market pricing, with positive pricing in the custom premix solutions business, it added.
During the three month period, the company completed its €100m share buyback programme and also completed the deal for the bioactive ingredients business of PanTheryx for $46m.
Siobhán Talbot, Glanbia's Group Managing Director, said the company has continued to deliver good momentum during the third quarter of 2023.
She said that along with a strong outlook for the remainder of the year, the company has upgraded its expected growth in full year adjusted earnings per share to between 17% and 20% on a constant currency basis.
"The group's portfolio of better nutrition brands and ingredients continues to resonate strongly with consumers seeking health and wellness, with a particular focus on protein," she stated.
"Glanbia continues to generate strong cash flow, which has been allocated in the period to complete the return of €100m to shareholders via a share buyback programme and build strategic capabilities, with the acquisition of the B2B bioactive ingredients business of PanTheryx, highly complementary to the capabilities in GN Nutritional Solutions," she added.
Siobhán Talbot is due to step down from Glanbia at the end of the year after 10 years in charge of the company. Hugh McGuire was named as its new CEO in August.
Glanbia said that Ms Talbot will step down from her position and from the Glanbia Board on December 31 and will retire from the Group in January 2024.
Shares in Glanbia moved higher in Dublin trade today.
