Ireland's Glanbia Sees Fall In Revenue As Dairy Prices Decline
Irish ingredients and nutrition group Glanbia has reported that its total group revenue for the three months ending 2 April 2016 declined by 2.5 per cent on a reported basis and by 3.3 per cent on a constant-currency basis compared with the previous year.
The group says that this was driven by volume growth of just 0.5 per cent, as well as price declines of 5.8 per cent, mainly due to falling dairy-market prices.
Despite the fall in revenue, Glanbia’s managing director, Siobhán Talbot, said that the company delivered a "good performance".
Talbot said, "Our growth platforms of Glanbia Performance Nutrition and Global Ingredients delivered volume growth in the first quarter. Our ongoing strategy of building a business to deliver better nutrition via consumer brands and high-quality ingredients has mitigated the impact of weak dairy markets.
Acquisitions have played a key role in the company’s sports-nutrition arm, Glanbia Performance Nutrition, allowing its volumes to grow by 2 per cent and its revenues to grow by 5.6 per cent.
However, revenue for its Global Ingredients business fell by 5.2 per cent, even though volumes for the first three months of 2016 were up 1.5 per cent.
© 2016 European Supermarket Magazine – your source for the latest retail news. Article by Jenny Whelan. To subscribe to ESM: The European Supermarket Magazine, click here.