Shares in global nutrition group Glanbia slumped today despite reporting an 8.4% increase in revenues - on a constant currency basis - for the three months to the end of March.
In a trading update issued ahead of its AGM, Glanbia said its Nutritionals business was the main driver of revenue growth with a good performance in particular from its Nutritional Solutions business.
It said that revenue growth in its Performance Nutrition division came on the back of a strong performance from the recently acquired SlimFast brand.
"Our strategy remains on track and we reiterate our full year guidance of 5% to 8% growth in adjusted earnings per share, constant currency, in 2019, with growth to be delivered in the second half of the year," the company's Group Managing Director Siobhán Talbot said.
During the first quarter, Glanbia bought US firm Watson for $89m in cash.
Glanbia said the non-dairy ingredient solutions business is a complementary acquisition for the group and is now is part of the Nutritional Solutions business within Glanbia Nutritionals.
Revenues at Glanbia's Performance Nutrition division grew by 4.9% in the first quarter with sales boosted by the SlimFast acquisition. The company said the SlimFast business was performing strongly with its integration progressing as planned.
Glanbia noted that growth was driven by the core range and especially strong demand for recent innovations in the UK and US.
It said the full outlook for the division is "good" with consumption growth trends expected to remain positive for the rest of the year, which is expected to drive growth over the full year.
"Price increases will be implemented in the second half of the year and full year revenue is expected to be driven by a mix of volume and price increases," today's trading statement said.
Meanwhile, Glanbia Nutritionals saw its revenues rise by 10.4% on the back of a volume increase of 11.2%, which was partly offset by a price decline of 2.4% and the Watson acquisition.
The division consists of US Cheese and Nutritional Solutions.
The company said the division's outlook is good, with positive momentum continuing across the Nutritional Solutions business driven by strong underlying volume growth and expected positive pricing.
Shares in the company were 6% lower in Dublin trade today.