Food and nutrition group Glanbia expects higher prices to drive further sales growth after double-digit gains in the first six months of the year.
The Kilkenny-headquartered company reported a 26.8 percent increase in consolidated sales at constant exchange rates (38.5 percent at reported values) to EUR 2.8 billion in the first half of the year.
The increase was driven by volume and price increases at its sports nutrition division, Glanbia Performance Nutrition – which includes brands such as Slimfast – with a 1.9 percent like-for-like volume increase and a 13.9 percent price increase over 2021.
Volumes increased by 1.6 percent in the Nutritional Solutions division and prices rose by 17.9 percent.
The US cheese division recorded a volume increase of 6.6 percent with a price increase of 28.8 percent.
Consolidated earnings before interest, taxes and amortization (EBITA) amounted to EUR 171.7 million after EUR 159.9 million in 2021.
However, the group’s margins have contracted slightly to 6.1 percent – from 7.8 percent in 2021 – on efforts to contain cost inflation.
Adjusted earnings per share were above expectations at 52.31 cents.
The group returned 127.1 million euros to shareholders via share buybacks in the six months to July and increased its interim dividend by 10% to 12.93 cents per share.
The group expects strong earnings growth for the remainder of the year, with full-year earnings per share guidance raised to 9-13 percent in constant currencies (21-25 percent in reported numbers).
“I am pleased to report that the half-year 2022 results have exceeded our plans, demonstrating the impact of a range of measures implemented since late last year in response to unprecedented inflation,” said Siobhán Talbot, Managing Director the group.
“Revenues grew strongly during the period with significant pricing initiatives and volume growth across all businesses.
“We will continue to monitor inflation trends into the second half of the year, but are confident that further pricing action and operational efficiencies will result in improved margins and strong EBITA growth year-on-year.”
https://www.independent.ie/business/irish/price-hikes-help-glanbia-revenues-rise-to-28bn-in-first-half-of-2022-41917518.html Price hikes help Glanbia’s revenue jump to €2.8 billion in the first half of 2022