Glanbia Earnings Rise, New Chair Appointed
Glanbia Boosts Forecasts,Announces acquisition & Leadership Change
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Glanbia,the global nutrition group,has upgraded its full-year earnings guidance following a period of strong revenue momentum and strategic acquisitions. The company also announced a leadership transition, with Paul Duffy set to succeed Donard Gaynor as Chairman next year, and revealed a deal to acquire Brazilian nutritional premix business, Sweetmix.
financial Performance & Outlook
Glanbia reported positive financial results, prompting an increase in its adjusted EPS guidance to 130 to 133 cent. This optimistic outlook is fueled by increased revenue in its Performance Nutrition (PN) and Health & Nutrition (H&N) divisions. The company demonstrated commitment to shareholder returns, with a 10% increase in the interim dividend and €62.8 million returned via share buyback programmes.
Breaking down divisional performance:
Performance Nutrition: Revenues decreased by 3.6% to $850 million, with EBITDA falling 30.8% to $108.2 million. This decline was attributed to anticipated challenges in the US club and speciality channels, and reduced performance from non-core brands. Price increases in international markets were partially offset by tactical reductions on specific products.
Health & Nutrition: This division experienced meaningful growth, with revenues rising 18.4% to $313 million and EBITDA jumping 36.2% to $60.9 million. This was driven by a 6.9% increase in volume and an 11.5% boost from recent acquisitions.
Dairy Nutrition: Revenues increased by 14.1% to $763.7 million, with EBITDA rising 19.3% to $72.2 million. This growth was supported by a 4.3% increase in volume and a 9.8% increase in price, benefiting from favourable dairy markets and strong whey protein demand.
Strategic Acquisition: Sweetmix
Glanbia has agreed to acquire Sweetmix, a Brazil-based nutritional premix and ingredients solutions business. This acquisition is expected to facilitate continued growth within the Latin American region, expanding Glanbia’s reach and capabilities in a key emerging market. The deal underscores Glanbia’s commitment to strategic acquisitions that complement its existing portfolio and drive long-term value.
Leadership Transition: Duffy to Succeed Gaynor as Chairman
Glanbia announced a planned leadership transition, with independent non-executive director Paul Duffy set to become the new Chairman next year. he will succeed Donard Gaynor, who will retire from the board on December 31st.
Paul Duffy brings extensive global business experience in the consumer sector to the role. He has been a director of glanbia since March 2021 and currently serves on the Nomination & Governance and Remuneration Committees,and also chairing the Audit Committee.
Duffy’s impressive career includes:
Former Chairman and CEO of Pernod Ricard North America.
25 years with Pernod Ricard, holding senior leadership positions including Chairman and CEO roles at Pernod ricard UK, The Absolut Company (Sweden), and Irish Distillers. Fellow of Chartered Accountants Ireland.
Graduate of Trinity College Dublin.
Current Non-Executive Director roles at Hostelworld and WA Baxter & Sons, and former Chairman of Irish Children’s Museum.This change in leadership is expected to provide continuity and strategic direction as Glanbia continues to execute its growth strategy.
Shares in the company experienced positive movement in Dublin trade following the announcements.
Additional reporting by Glenda Sheridan