Glanbia expected to report a fall in total group sales

Irish performance nutrition and ingredients group Glanbia is due to report half-year results on Wednesday, with analysts forecasting a slight decline in total group sales to €1.8 billion.

Total group earnings before interest, tax and amortisation (EBITA) is forecast at €176 million, and adjusted diluted earnings per share (EPS) is expected to be 44.15 cent, an increase of 9.6 per cent year on year.

Davy Stockbrokers said Glanbia is expected to have made good progress towards its full-year goal of delivering 8-10 per cent constant currency earnings per share growth.

Davy analyst Jack Gorman said Performance Nutrition should generate "very strong EBITA growth" in the first half, benefitting from accelerating branded revenue growth and a large uplift in margin versus the prior year.

“Global Ingredients profits are likely to be flattish year-on-year, as it navigates dairy price deflation whilst growing into its new whey capacity in Idaho and substantially integrating divisional activities,” he added.

Glanbia reported mixed half-year results last August, posting total group revenue of €1.9 billion, which was down more than 8 per cent on 2014 on a constant currency basis. This was due to lower milk prices.

Performance Nutrition accounted for 38 per cent of total earnings in the first half of last year, eclipsing its ingredients division for the first time. Global Ingredients reported earnings of €60.3 million for the first half of 2015, while the Performance Nutrition division, had earnings of €60.7 million.