31st Jul 2019 10:01
(Alliance News) - Irish nutrition group Glanbia PLC on Wednesday guided for a drop in annual earnings after issues in a core unit led to interim profit declining.
For 2019, Glanbia now sees adjusted earnings per share between 88 euro cents and 92 cents. This would be a 3% to 7% drop at constant currency, with previous guidance having seen a rise of 5% to 8%.
Shares were 15% lower on Wednesday morning in London at EUR11.86 each.
Glanbia's pretax profit for the six months to June 29 fell 18% to EUR91.7 million, and earnings before interest, tax, and amortisation slipped 15% to EUR111.4 million.
This came despite revenue growing 19% at actual currency, and 12% and constant currency, to EUR1.76 billion.
Glanbia is paying an interim dividend of 10.68 cents, compared to 9.71 cents a year before, a 10% rise, in line with its policy.
"Our Nutritional Solutions, US Cheese, and joint venture businesses had good results in the period. The recent acquisitions of SlimFast and Watson are performing very well," said Managing Director Siobhan Talbot.
"Glanbia Performance Nutrition had a disappointing first half reflecting a number of factors including, business seasonality, consumer channel shift in Europe, and difficult global trade dynamics in key international markets. Overall while we have positive momentum across many parts of the group, this has increased our caution for the remainder of the year."
Performance Nutrition reported a 26% drop in Ebitda, despite revenue rising 19%. Volumes were down 8.2%, hurt by geopolitical issues hindering Glanbia's supply chains, it said.
US Cheese, the biggest segment, grew Ebitda 13% and revenue 12%, with volumes rising 4.8%. Nutritional Solutions revenue surged 35% as volumes climbed 12%, with Ebitda up 5.2%.
Related Shares:
Glanbia