Glanbia got a boost from the continued hunger for protein last year as the Irish nutrition group reported a healthy jump in sales.
Revenue was up 5.8% to $3.8bn in the year to 4 January, while earnings per share rose 6.8%, in line with guidance.
Some of the largest growth was seen in Optimum Nutrition and Isopure, two of Glanbia’s core protein brands, which both delivered double-digit volume growth, according to CEO Hugh McGuire.
Protein products have seen a sustained boom in recent years with sales of protein bars, powders and drinks up 24% in the UK last year to over £200m, according to NIQ.
Glanbia’s nutritional business – which includes its premix and protein solutions – saw revenue rise 14%, largely led by the acquisition of the US ingredients business Flavor Producers for around $355m last year.
In November, Glanbia announced plans to split its nutritionals business into two segments – health and nutrition, and dairy nutrition – as part of a “group-wide transformation programme”.
This restructure also includes selling off brands like SlimFast and Body & Fit, and exiting its Benelux e-commerce business.
“These actions are designed to drive focus, unlock value and position Glanbia for its next phase of growth,” said McGuire. Glanbia estimates the changes will save at least $50m a year by 2027.
However, next year the business expects earnings per share to fall as its performance nutrition division delivers “a decline in performance as a result of an unprecedented level of input cost inflation.” It expects its two nutritional businesses to continue growing.
Glanbia had increased its dividend by 10% and returned €102m to shareholders via its share buyback programme, McGuire noted. He confirmed today there would be an additional €100m of share buybacks.
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