1st Nov 2018 09:33
LONDON (Alliance News) - Glanbia PLC on Thursday reiterated its annual earnings guidance and said that reported revenue for the first nine months of the year fell due to a weak dollar against its reporting currency, the euro.
The Irish nutrition group recorded 2.6% drop in reported revenue for nine months to September 29. However, on constant currency basis, it recorded 3.7% revenue growth. Glanbia didn't provide any specific figures.
The revenue rise, on a constant currency basis, was driven by volume growth of 6.7% and acquisitions, which delivered 1.1%.
Pricing for the nine months fell 4.1% versus the same period in the prior year due to relatively weaker dairy markets and investment in brands.
Glanbia, which produces nutrition supplements and dairy ingredients such as cheese, continues to expect adjusted earnings per share for continuing business to grow between 5% to 8% on constant currency basis for full year 2018. It is predicting a 5% currency headwind to annual results, if average euro-dollar exchange rate remains at similar levels to the average rate for the first nine months of 2018.
The company's performance nutrition business delivered constant currency revenue growth of 4.7% in the first nine months, driven by volume growth of 6.7% and Body & Fit acquisition delivering 2.4%, offset by a pricing decline of 4.4%.
Nutritional Solutions division, which includes dairy and non-dairy ingredients, recorded 0.7% growth in revenue for the nine months, driven by volume growth of 7.3% and offset by 6.6% price decline.
The company's net debt at September 29 stood at EUR398 million, down EUR84 million from the year ago period.
Shares in Glanbia were trading 4.7% lower at EUR14.89 per share on Thursday morning.
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