Glanbia PLC - Third Quarter 2019 Interim Management Statement
THIRD QUARTER 2019 INTERIM MANAGEMENT STATEMENT
Q3 YTD revenues up 16.9% - Full year earnings guidance reiterated
Results summary for the first nine months of 2019:
· Revenues up 16.9% driven by volume up 2.4%, price up 3.2% and acquisitions adding 11.3%;
· Strong performance from Nutritional Solutions ("NS") growing revenue 25.4% with the Watson acquisition adding 12.2%, volume up 9.3% and price up 3.9% with good growth across dairy and non-dairy solutions globally;
· Watson acquisition performing well with the integration on track within NS ;
· GPN like-for-like volumes were weaker than expected in the third quarter as key non-US markets in
· SlimFast growth accelerated in Q3 with YTD like-for-like sales , on a pro-forma** basis, up 34.8%; and
· Guidance reiterated for full year 2019 adjusted earnings per share on a reported basis being in a range of
Full year 2019 outlook
In 2019, NS and US Cheese are expected to deliver good revenue growth along with a positive contribution from the Watson acquisition. GPN is expected to deliver good overall revenue growth as like-for-like revenue declines of mid-to-high single digits are countered by a strong performance from the SlimFast acquisition. The like-for-like revenue decline in GPN reflects on-going challenges in EU,
Commenting today, Siobhán
In the nine months ended
GPN delivered revenue growth of 16.5% in the first nine months of 2019. This was driven by the SlimFast acquisition adding 25.8% revenue, offset by a volume decline of 7.9% and a pricing decline of 1.4%.
Volume decline in the first nine months of 2019 primarily related to the continued challenging environment in some non-US markets. As previously noted, key territories experiencing head winds were
GPN is actively addressing these issues. In Europe, where channel shift to online has accelerated, the direct-to-consumer online platform has been enhanced and the Body & Fit brand is being rolled out across the region.
Lifestyle brands in
SlimFast continues to deliver a very strong performance with growth accelerating across multiple formats along with successful innovations. Pro-forma** like-for-like sales in the first nine months of 2019 were up 34.8%, with strong growth expected for the remainder of the year.
For full year 2019 GPN expects like-for-like branded revenue to decline by mid-to-high single digits predominantly as a result of continued challenges in some non-US markets and a lower level of activity in the Club channel in
GN delivered revenue growth of 17.1% in the first nine months of 2019. This was driven by a volume increase of 7.9%, a price increase of 5.7% and the Watson acquisition delivering 3.5% revenue.
NS is a leading provider of customised nutrient premixes, advanced-technology protein solutions, functional beverages and flavours. NS has a diverse product portfolio and supports its customers on both a global and regional basis, supplying solutions that improve product functionality and nutritional profile.
NS revenue increased by 25.4% in the first nine months of 2019. This was driven by volume growth of 9.3%, as a result of a strong performance across both dairy and non-dairy solutions, a pricing increase of 3.9%, which was primarily related to relatively higher year-on-year dairy markets in
Watson, which closed in
NS is a key innovation partner with its customers with healthy snacking solutions a key driver of growth in the period. NS further continued to expand its reach in non US markets where it partners with key brand owners delivering a suite of products from ingredients to full consumer ready solutions as they extend their brand reach into new consumers and geographies.
For full year 2019 NS expects to deliver continued strong volume momentum across the dairy and non-dairy platforms as well as a contribution from the Watson acquisition. Full year pricing is expected to be positive reflecting higher year on year dairy markets in
US Cheese is a leading producer and marketer of American-style cheddar cheese in the US supplying brand owners and private label companies who in turn supply major retail and food service operators. US Cheese operates all of the dairy processing plants within GN and also the SwC joint venture plant which produces cheese and whey ingredients.
US Cheese revenue increased by 13.8% in the first nine months of 2019. This was driven by volume growth of 7.4% as a result of a strong operational performance. Price increased by 6.4% due to higher year-on-year cheese markets in
US Cheese is expected to deliver low double digit revenue growth versus prior year as a result of volume growth and stronger year-on-year cheese prices in
Joint Ventures (all commentary is on a constant currency basis*)
* The Constant Currency movement eliminates the impact of foreign exchange rates on translation of results to Euro for reporting. To arrive at the Constant Currency change, the average FX rate for the current period is applied to the relevant reported result from the same period in the prior year. The average Euro US Dollar FX rate year-to-date ('YTD') to Q3 2019 was
** SlimFast was acquired on
This announcement contains forward-looking statements. These statements have been made by the Directors in good faith based on the information available to them up to the time of their approval of this report. Due to the inherent uncertainties, including both economic and business risk factors underlying such forward looking information, actual results may differ materially from those expressed or implied by these forward-looking statements. The Directors undertake no obligation to update any forward-looking statements contained in this announcement, whether as a result of new information, future events, or otherwise.
IMS conference call dial-in details
There will be an analysts' conference call to accompany this Interim Management Statement at
To listen to the call, please dial-in using the following numbers:
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0330 336 9127
+44 330 336 9127
323 994 2093
A replay of the call will be available for 30 days from this afternoon. Please see the link below to the Investor Relations section of the
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