Diversity helps Glanbia's earnings despite weak dairy market

Its global performance nutrition arm sees earnings soar 35% for first half of year...

Glanbia, the global nutrition and dairy products group, has reported a "strong performance" for its half-year, driven primarily by the group's performance nutrition division.

Adjusted earnings per share were up 10.8% on the prior half year, while earnings before interest, taxes, and amortisation (EBITA) from wholly-owned business increased 13.7% to €157.4m.

Glanbia's performance nutrition division fared especially well, with operating profits up 35% to €82m – more than half of all group profitability. 

This division, which produces bars, shakes and other protein-based lifestyle and energy products saw revenues increase by 12% to €505m, much of which was delivered by the group’s acquisition of the Californian company, Think Thin, late last year.

Glanbia Nutritionals, the group’s global cheese and dairy ingredients business, saw a slight dip in earnings to €58m due to ongoing challenges in dairy commodity markets.

Siobhán Talbot, Group Managing Director, said:

“Sales of performance nutrition brands and value-added nutritional ingredients showed good growth in the first half of 2016 delivering on our vision to be a leading nutrition business. 

"Global dairy markets remain weak and continue to be a challenge for parts of the business, however the diversity of the Glanbia portfolio has enabled us to navigate this and we reiterate guidance for the full year of adjusted earnings per share growth of 8% to 10% on a constant currency basis.”