22nd Apr 2020 11:29
(Alliance News) - Glanbia PLC on Wednesday reported revenue growth for its first quarter on "good" demand across its divisions and reiterated its decision to pay a 2019 final dividend.
Shares in the Irish nutrition firm were trading 5.8% higher at EUR9.00 each on Wednesday morning in London.
Glanbia said group revenue for the three-month period ended April 4 rose by 20% compared to the same period in 2019, or 17% on a constant currency basis.
The Glanbia Performance Nutrition business saw revenue rise by 3.6% year-on-year. The rise in revenue was driven by a 4.1% volume growth offset by a price decline of 0.5%. The volume growth came as a result of improvement in the North American Performance Nutrition and Lifestyle portfolios, while the price decline was driven by increased promotional spend in International markets and the Direct-to-Consumer business.
The Glanbia Nutritionals division saw revenue increase by 24% on a price increase of 14%, a 7.5% volume increase, and the Watson LLC acquisition which accounted for 2.3% of revenue in the division.
Looking ahead, the Kilkenny-based company said that while the disruption to its business amid the Covid-19 outbreak has been limited, it has decided to withdraw its guidance for 2019 due to rapidly-evolving customer behaviours.
Glanbia added that it has implemented measures to maintain liquidity such as restricting discretionary spend, deferring merger & acquisition activities, and reducing capital expenditure. However, it said that it will pay its 2019 final dividend of 15.94 cents per share.
As at April 4, Glanbia had committed facilities of EUR1.15 billion with no debt due for renewal in the next 12 months and net debt of EUR690 million.
By Ife Taiwo; [email protected]
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