Irish food group Glanbia stopped selling on the Russian market after invading Ukraine.
Lanbia chief executive Siobhan Talbot confirmed on Thursday that the group – which owns brands including Slimfast and Optimum Nutrition – has suspended operations in both Russia and Ukraine.
She said the two countries accounted for less than 2 percent of Glanbia’s €4.2 billion total revenue last year.
The company said it was “deeply saddened” by the conflict in Ukraine.
It has pledged €100,000 to support humanitarian aid on the ground in Ukraine and said it will also match staff contributions to the fund.
A number of international companies have now left Russia or plan to do so in the face of widespread condemnation of the invasion.
Glanbia reported strong full-year 2021 results on Thursday.
Currency-adjusted sales increased 13.1 percent to 4.2 billion euros, while profit after tax rose to 167.4 million euros from 143.8 million euros in 2020.
In addition to the Glanbia Performance Nutrition division, which includes the Slimfast and Optimum Nutrition brands, the group also has a Nutritional Solutions division that produces dairy and non-dairy ingredients and flavoring solutions for the food and beverage industry.
While shares of Glanbia were down nearly 5 percent in morning trade on Thursday, Ms Talbot told the Irish Independent She believed this was more due to general market volatility given current events in Ukraine than any specific negative sentiment towards Glanbia.
The company said on Thursday it has committed an additional EUR 50 million for another share buyback. It said it returned 91 million euros to shareholders via buybacks and dividends last year.
Glanbia expects to complete the sale of its 40% stake in Glanbia Ireland in the second quarter of this year for proceeds of €307 million. Glanbia Ireland owns brands such as Avonmore and Kilmeaden.
Ms. Talbot acknowledged that while shareholders welcome buybacks, they would prefer to invest in the company.
“Our priority will always be to invest in the business first,” she said. “We are in no way, and never wish to give the impression, that we are less ambitious on M&A spending. Sometimes it’s just a function of the timing of opportunities.”
Glanbia said the ongoing impact of cost inflation, and particularly dairy-related inflation, will continue to be actively managed this year.
