Currency Fluctuations Hit Dairy Firm Glanbia In First Half
Irish dairy firm Glanbia has posted revenues of €1.12 billion for the first half of its financial year, however the business has been hit by currency fluctuations at its core businesses.
Total group revenue was up 3.6% at constant currency levels, however it fell 6.2% in reported terms.
Its Glanbia Performance Nutrition arm posted revenue growth of 4.9% at constant currency levels, however it was down 4.4% in reported terms, while its Glanbia Nutritionals division was up 2.4% at constant currency levels, but posted a reported revenue decline of 7.8%.
Overall, wholly-owned EBITDA from continuing operations was €123.7 million, which is a decline of 7.3% at constant currency levels, and 16.6% reported.
The group made a capital expenditure investment of €25.9 million in the first half of 2018, of which €18.9 million was strategic investment - the key focus of this was the rollout of a new ready-to-eat range in its Glanbia Performance Nutrition business.
The group is expecting to invest a total of €65 million to €70 million in capital expenditure over the full year.
In Line With Expectations
Glanbia managing director Siobhan Talbot asserted, "Glanbia delivered in line with expectations in the first half of 2018 and reiterates guidance for 2018 full year earnings growth.
"We continue to drive volume momentum with 5.7% growth in the first half and reiterate guidance for full year volume growth in the key portfolios of Glanbia Performance Nutrition and Glanbia Nutritional Solutions in the mid-to-high single digit range."
Talbot added that she expects margins for the full year to be similar to those reported in 2017.
"We prioritised investment in our brands and operational infrastructure in the first half in advance of input cost reductions which are materialising as expected in the second half of the year," she said.
The group has made a number of management changes to its board; in June, Henry Corbally retired as chairman of the business, and Martin Keane was appointed chairman with Pat Murphy being appointed vice chairman of the board.©
© 2018 Hospitality Ireland – your source for the latest industry news. Original article by Stephen Wynne-Jones for European Supermarket Magazine. Edited for Hospitality Ireland by Dave Simpson. Click subscribe to sign up for the Hospitality Ireland print edition.