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Sports nutrition fuels Glanbia double-digit H1 revenue growth

By Mark Astley+

21-Aug-2014

Glanbia's Global Performance Nutrition business, which includes its Optimum Nutrition brand, was
Glanbia's Global Performance Nutrition business, which includes its Optimum Nutrition brand, was "key contributor" to the group's H1 growth.

Fueled by the continuing success of its Global Performance Nutrition division, Irish dairy Glanbia recorded a double-digit increase in revenue for the first half of 2014.

In its results for the six months ended July 5 2014, published yesterday, Glanbia reported sales of €1.79bn (US$2.37bn) - a 10.7% increase on a constant currency basis on the €1.66bn (US$2.2bn) achieved in H1 2013

Earnings before interest, taxes, depreciation, and amortization (EBITDA) also jumped 10.3% - from €122.2m (US$162m) in the same period last year to €129.5m (U$172m). 

Kilkenny-based Glanbia branded its Global Performance Nutrition business, which incorporates its Optimum Nutrition, BSN, and ABB brands, the "key contributor" to these increases.

The sport nutrition business, which boasts the US as its single largest market, reported sales of €374.6m (US$496.9m) in H1 2014 - up 21.8% on €320.2m (US$425m) in the first half of last year. 

Glanbia's attributed this in part to the January 2014 acquisition of Scandinavian sports nutrition company, Nutramino.

Revenue from its Global Ingredients division, comprised of its US cheese and ingredients operations, jumped 10.7% to €565.8m (US$751m) - a "satisfactory performance" in Glanbia's eyes given the milk procurement issues in Idaho it experienced and an "unfavorable whey pricing dynamic."

Sales from its consumer business Dairy Ireland - down 7.7% to €383.2m (US$508m) - and its Joint Ventures and Associates segments - up 19.3% to €503.4m (US$668m) - were meanwhile "in line with expectations."

On the back of its first half performance, Glanbia has reiterated its earning guidance for 2014 of 8% to 10% growth.

"Overall, the outlook for the group for 2014 is positive," said Glanbia's half-year results.

"While Global Performance Nutrition is expected to be the main driver of growth, Dairy Ireland is expected to deliver an improved performance versus the prior year with the Global Ingredients Ireland largely unchanged."