Belfast Telegraph

Glanbia to be 'disciplined' in its buying activities as revenues rise

By John Mulligan

Irish food firm Glanbia will "remain disciplined" in its acquisition activity as revenues in one of its key growth areas - performance nutrition - move even higher, according to chief executive Siobhan Talbot.

The company, which has spun off its 60% holding in Dairy Ireland into the Glanbia joint venture, generated €1.18bn (£1.07bn) in revenue from continuing operations in the first six months of the year. That was 7.3% higher on a constant currency basis.

The firm operates a cheese production site in Magheralin, Co Armagh.

Its performance nutrition business, whose products include everything from protein smoothies and energy bars to sports drinks, delivered revenue of €543.5m (£492.4m) in the first half of the year and earnings before interest and tax (EBITA) of €83.9m. On a constant currency basis, the figures were 5.4% and 0.2% higher respectively on a constant currency basis.

Glanbia's nutritionals division generated revenue of €642.2m (£581.8m) and EBITA of €64.4m (£58.4m). Those figures were up 9% and 8.1% respectively on a constant currency basis.

Glanbia's nutritionals division is its biggest - with revenue last year of €1.2bn (£1.09bn) and EBITA of €111.8m (£101.3m).

It makes advanced-technology whey protein, specialist vitamin and mineral blends, plant-based ingredients and functional beverages.

It's also the biggest maker of American-style cheddar cheese in the United States.

Kilkenny-based Glanbia told investors yesterday that it retains available bank facilities totalling €1bn (£910m).

Last month Glanbia finalised a deal to sell its 60% stake in a joint venture called Dairy Ireland to the Glanbia Co-Op. Glanbia is receiving over €200m (£181m) from that sale and now holds a 40% stake in the new joint venture, called Glanbia Ireland. Glanbia has already received €112m (£101m) of the proceeds and should receive the remainder by the end of October.

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