Glanbia is benefiting from a “protein mega-trend”, according to the company’s new chief executive Hugh McGuire.
The Kilkenny-based nutrition group announced a 20 per cent jump in after-tax profits to $298.1 million (€275 million) for 2023. Earnings per share were also up by 20 per cent to 131.37 cent, prompting a near 8 per cent jump in the company’s share price.
Glanbia is one of the world’s leading producers of protein powders for gym goers. The company’s leading Optimum Nutrition brand generated $1.1 billion in revenue last year, the latest results show.
Mr McGuire said the company’s “two main growth platforms” were Glanbia Performance Nutrition, which generated $1.8 billion in revenue last year on the back of strong-selling brands Optimum Nutrition and Isopure and its Nutritional Solutions division, which generated just over $1 billion.
Ireland should oppose EU proposals on regulatory protection for medicines
‘Extravagance? I get stressed by how much my kids will pay for a pair of runners’
Negotiation is a fact of life, whether you are trying to buy a house, close a deal or squeeze a pay rise
AIB offloads risk and obesity drug boss calls on Ireland to step up to the plate
“We’re benefiting from increased consumer interest in protein supplementation, protein fortification. Protein is a mega-trend ... and Glanbia is a protein powerhouse,” Mr McGuire said.
Overall the company reported an 8.7 per cent decline in group revenue to $5.42 billion for the 2023 financial year.
This was mainly down to a fall-off in revenue at its US Cheese division, which decreased by 13.9 per cent to $2.6 billion from $3 billion the year before. “This was driven by a 0.7 per cent increase in volume and a 14.6 per cent decline in price, with the pricing decline aligned to the lower year-on-year cheese market pricing,” the company said.
Mr McGuire noted Glanbia’s cheese business was a high-volume, low-margin operation, which accounted for only 10 per cent of profits.
Glanbia’s board recommended a final dividend of 21.21 euro cent per share, which brings the total dividend for the year to 35.43 euro cent per share, a 10 per cent increase on the previous year.
As part of the results announcement, Glanbia also signalled a further €100 million share buyback this year.
During 2023 the company purchased and cancelled 7.2 million ordinary shares, representing 2.7 per cent of the total issued, at a total cost of €100 million.
Glanbia’s strong financials and additional share buyback announcement saw its shares jump by 7.7 per cent to €17.01 on Dublin’s Iseq. Mr McGuire said the company had no plans to seek a US listing similar to building materials giant CRH.
“Glanbia is a company with very strong fundamentals – a clear strategy, a portfolio of great brands and ingredients playing into strong underlying consumer health and wellness trends with a team of talented people,” he said.
“Looking ahead, we will focus on driving growth and shareholder value by stepping up awareness and distribution of our great brands, with a robust innovation pipeline across both our growth platforms. In 2024, we expect adjusted EPS growth of 5 per cent to 8 per cent constant currency, which will be driven by a strong operating performance.”
- Sign up for Business push alerts and have the best news, analysis and comment delivered directly to your phone
- Find The Irish Times on WhatsApp and stay up to date
- Our Inside Business podcast is published weekly – Find the latest episode here
