The Glanbia group records strong quarter performance from its nutritional products
The Glanbia global nutritional ingredients and solutions group has issued an interim management statement revealing the business has performed strongly in the first annual quarter, recording revenue increases of 17%.
According to the company, the key drivers of its growth have been a notable contribution from its nutritional division (which includes snacks-based product ranges), as well as its cheese business. The company also highlighted price growth of 9.2%, and volume growth of 6.3% as other key factors in its results.
In its statement on the first quarter, the group said that it has traded well due to good consumer demand for its nutritious products and ingredients, which are predominantly sold in retail end markets. Strong demand in North America has reportedly offset weaker demand in international markets where the challenges posed by Covid-19 had a greater impact, in particular, on GPN’s route-to-market.
In response to the Covid-19 pandemic the Group put in place business continuity planning teams with three priorities: protect the health and safety of employees, continue supply of food and maintain the Group’s strong financial position.
Commenting today, Siobhán Talbot, Group Managing Director, (below), said: “Glanbia had a good first quarter of 2020, growing revenues by 17%, constant currency, versus prior year. This was underpinned by good volume growth in both Glanbia Performance Nutrition (“GPN”) and Glanbia Nutritionals (“GN”) in the period. Overall demand in our key end markets was positive in the first quarter, however greater volatility in consumer shopping behaviour was evident in recent weeks arising from Covid-19 and due to uncertainty of duration and impact of this pandemic, full year 2020 financial guidance is withdrawn.
“The Covid-19 pandemic is a human tragedy and our priorities are to protect our people, provide essential food supplies and maintain our strong financial position. Our nutritious products and ingredients are essential for our consumers and to date all of our plants have largely operated to plan and maintained supply. I would like to express my deep thanks to our employees, customers and suppliers around the world, in particular to our frontline staff and their families who continue to give enormous commitment to keep our supply chain and operations running. As an essential service, the food industry has a critical role to play and we are very focused on continuing to serve our consumers, customers and communities through this global crisis.”
While the group expressed confidence that it had traded well in Q1, it noted that demand became more volatile at the end of the quarter and into April particularly in its nutritional market. As the business conceded, it is extremely difficult to assess the impact and duration of Covid-19, and as a result it is withdrawing its 2020 full year financial guidance issued on 26 February 2020.
The business concluded: “As an organisation Glanbia is highly focused both on navigating the current challenges and emerging strongly to capture growth opportunities that will become available. The majority of the Glanbia portfolio is exposed to health and wellness trends and in growing channels which is positive for long term growth. The financial strength of Glanbia and the commitment of its people, positions the Group well for the future.”