26th Feb 2020 09:54
(Alliance News) - Irish nutrition firm Glanbia PLC said Wednesday that revenue rose in 2019, while profit fell amid challenges in the Performance Nutrition segment.
The Kilkenny-based company said revenue rose 17% to EUR3.88 billion, compared to EUR3.2 billion in 2018, driven by a strong performance from the Glanbia Nutritionals segment, and by the acquisitions of SlimFast and Watson.
Glanbia completed its USD89 million cash acquisition of US-based non-dairy ingredient company Watson LLC and Polymer Films LLC, collectively known as Watson, at the end of February 2019.
Weight-loss brand SlimFast was bought by Glanbia for USD350 million in November 2018.
Pretax profit slid to EUR199.1 million in 2019 from EUR266.8 million in 2018. Glanbia said it is addressing issues in Performance Nutrition segment, where earnings before exceptional items dropped 15%, by simplifying the business and concentrating on its core brands. The segment is expected to "regain branded revenue growth momentum in 2020," Glanbia said.
The company declared a total dividend for 2019 of 26.62 cents per shares, a 10% increase from 24.20 cents in 2018.
Looking ahead, Glanbia said it expects to deliver adjusted earnings per share "broadly in line with prior year".
The company also said it will seek shareholders approval for a share buyback programme at the annual general meeting in April. It didn't provide an intended size of the buyback.
Siobhan Talbot, managing director, said: "Glanbia is financially strong and cash generative. We have increased our dividend by 10% and we are proposing to our shareholders that we adopt a share buyback programme in 2020.
"We are confident that the actions being taken will position the company to generate enhanced shareholder value in a growing healthy nutrition market," Talbot said.
Glanbia shares were trading 1.3% lower in London at EUR10.42 on Wednesday
By Loreta Juodagalvyte; [email protected]
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