Global nutrition group Glanbia has today upgraded its full year guidance on the back of an improved outlook for margins in its Glanbia Performance Nutrition division in the second half of the year.

In a trading update ahead of its AGM in Kilkenny today, Glanbia said its first quarter group performance was broadly in line with expectations.

Group revenue for the first quarter by declined 2.4% on a constant currency basis with pricing up 3.5%, a volume decline of 6.2% and the net impact of acquisitions and disposals delivering 0.3% growth.

Siobhán Talbot, Glanbia's Group Managing Director, said that overall, the first quarter has progressed largely as expected for the group.

"We are pleased to be upgrading our full year guidance for growth in Group adjusted EPS to 7% to 11%, constant currency," Ms Talbot said.

"We continued the portfolio evolution and recently completed the sale of the plc's holding in the Glanbia Cheese joint ventures to our joint venture partner, Leprino Foods. As a result, we have increased and extended the share buyback programme announced on 1 March, from €50m to €100m," she added.

Glanbia said its Glanbia Performance Nutrition division saw growth of 4.6% in the first three months of 2023.

It said that revenue growth was driven by price growth of 14.1% and a volume decline of 9.5%.

"ON", the leading brand in the sports nutrition sector globally and which makes up about 60% of the GPN portfolio, delivered volume growth in the first quarter with the overall volume decline in GPN driven largely by the SlimFast brand.

Revenue in its Glanbia Nutritionals division fell by 5.3% in the three month period due to price decreases of 0.8%, volume decreases of 5% and the net impact of acquisitions and disposals delivering 0.5% revenue growth.

Meanwhile, revenue at its Nutritional Solutions division decreased by 14.8% in the quarter.

Glanbia said that pricing rose by 1%, with positive pricing in the premix business offset by negative pricing in the proteins business driven by the decline in dairy market pricing.

Volumes declined by 17.4% driven by customer supply chain rebalancing, it added.

Glanbia said that pricing rose by 1%, with positive pricing in the premix business offset by negative pricing in the proteins business driven by the decline in dairy market pricing. Volumes declined by 17.4% driven by customer supply chain rebalancing.

Glanbia said it continues to support customers seeking to address growing consumer trends through its core strengths in premix solutions and extensive capability in protein solutions.

"Based on customer engagement, volume trends are expected to normalise as the year progresses and we expect a marginal volume decline in the full year relative to the prior year," it added.

Glanbia said that based on the current market environment and expectations for the remainder of the year, it expects revenues at Glanbia Performance Nutrition division to grow by 5% to 7% on a constant currency basis and grow full year EBITA margins to between 12.5% to 13.5%.

It also said it expects its Glanbia Nutritionals - Nutritional Solutions - division to see a decline in like-for-like revenue driven by lower dairy market pricing and a marginal volume decline compared to 022.

The division's EBITA margins are, however, expected to grow to between 12% to 13%.

Shares in Glanbia moved higher in Dublin trade today.