Glanbia expects 5-10% growth in 2022
Dairy sales were up 19% in the first quarter
5 May 2022
1 minute read
Glanbia on Thursday raised its full year earnings guidance on strong demand and increased prices, days after activist investor Clearway Capital called for a break-up of the Irish nutrition supplement maker, reported Reuters.
Clearway wants the board to look immediately at spinning out the company's Glanbia Performance Nutrition (GPN) unit, which produces sports nutrition products and brands such as SlimFast, which it says would help boost the company's value to more than 6 billion euros.
Glanbia said GPN revenue rose by 14.7% in the first quarter with sales up 19% in its other main Glanbia Nutritionals (GN) division, which produces dairy products. Total revenue was up 25.0% on a constant currency basis.
The North America-focused group expects revenue growth in both units to be driven primarily by pricing this year. It increased prices by 17% in the first quarter to mitigate higher costs.
Volume growth was sustained at 6.9%, it added.
As a result, Glanbia expects to deliver 5% to 10% growth in full year adjusted earnings per share on a constant currency basis, up from a forecast of 2% to 8% in March.
"Glanbia continues to grow as a focused, purpose-led global nutrition company serving powerful consumer health and wellness trends," Group Managing Director Siobhán Talbot said in a statement.
Source: Reuters
