Glanbia Posts Forecast-Beating Earnings, Shares Rise By 10%
Irish sports nutrition supplement maker Glanbia on Wednesday reported a 9% increase in earnings per share, beating its own guidance and pushing its shares up by 10%.
The Irish company, which produces cheese, protein supplements for body builders as well as nutritional ingredients for food producers, had forecast an increase in earnings per share (EPS) of between 5% - 8% on a constant currency basis.
The diary giant's wholly-owned EBITA was up 5.2% year-on-year at constant currency to €284.9 million (€283.2 in 2017million).
'A Strong Finish To 2018'
"Glanbia’s FY results confirm a strong finish to 2018 and were ahead of forecasts at the revenue, EBITA (earnings before interest, taxes, and amortisation) and EPS reporting lines," Davy Stockbrokers said in a note, also reiterating its "outperform" recommendation.
Glanbia's group managing director, Siobhán Talbot, attributed its performance to the strong volume growth in the branded portfolio of Glanbia Performance Nutrition(GPN) and the Nutritional Solutions component of Glanbia Nutritionals(GN).
Talbot added, "The outlook for 2019 is positive and Glanbia expects to deliver 5% to 8% growth in adjusted earnings per share, constant currency.
"If the Euro : US Dollar exchange rate remains at current levels, the reported 2019 result will be 3% higher than the constant currency outlook."
Glanbia also announced the acquisition of US ingredient solutions business Watson for $89 million and finance director Mark Garvey said the company would continue to look for further acquisition opportunities in its main business lines.
"We have a strong balance sheet. We have the ability to invest," Garvey told Reuters.
"Over the next one or two years we will continue to look for new opportunities."
Glanbia shares were up 10.25% at €17.85 at 8:35 GMT.