Glanbia, the performance nutrition and ingredients group, benefited from a strong dollar to report a 10.5 per cent jump in revenues in the first three months of the year. However, when the impact of currency translations is removed, the group was hit by falling prices as a result of lower prices for US cheese and dairy market prices.
In the three months April 4th 2015, wholly owned revenue at Glanbia was up 10.5 per cent, although on a constant currency basis it declined 3.6 per cent when compared to the same period in 2014.
Total group revenue, including joint ventures & associates, was up 3.7 per cent on a reported basis but down 8.8 per cent on a constant currency basis.
Siobhán Talbot, group managing director said that the group delivered a “solid performance” in its first three months.
“On a reported basis performance benefited from the positive translation effect of a strong US dollar while on a constant currency basis the group delivered a satisfactory performance against a high comparator in 2014. We reiterate our full year guidance of adjusted earnings per share growth of 9 per cent to 11 er cent on a constant currency basis with a reported result of over 20 per cent if exchange rates remain at current levels for the rest of the year. We expect growth to be weighted to the second half of the year.”
Glanbia’s global performance nutrition division delivered a “good performance”, as revenues increased by 2.2 per cent. The group benefited from renewed momentum in the US “offsetting head winds in some international markets as a strong US dollar along with geopolitical developments impacted local purchasing power in certain geographies”. It is forecasting both revenue and margin growth for the full year.
Revenues fell by 13.3 per cent in global ingredients, as volume growth of 10.7 per cent was offset by a pricing decline of 24.0 cent predominately relating to lower US cheese market prices.
The group’s Irish dairy business saw revenues rise by 7.4 per cent, based on ay a combination of volume growth of 5.2 per cent and price increases of 2.2 per cent. “The outlook for the remainder of the year is positive as the business benefits from cost improvements,” Glanbia said.
Glanbia’s net debt stood at € 616 million, as of April 4th, an increase of € 106 million from the 2014 year end position, primarily driven by seasonal increases in working capital requirements and the effect of a weaker Euro FX rate.
Looking to 2015, Glanbia said that the outlook is positive, “as Glanbia continues to execute its growth strategy”.
