Global nutrition group Glanbia has today reiterated its full year earnings per share guidance and announced plans to restructure its nutritionals business.
In a trading update for the nine months to October 5, Glanbia said its group performance was in line with expectations as group revenue rose by 6%.
Glanbia said the main drivers of the revenue growth were a volume increase of 2.6%, a price decrease of 1.1%, the positive impact of the 53rd week of 2.7% and the net impact of acquisitions and disposals of 1.8%.
The company reiterated its full year guidance of 5% to 8% growth in adjusted earnings per share.
Glanbia today said it will intends to create a new operating model, separating its GN business into two new segments - Health & Nutrition and Dairy Nutrition.
The Health & Nutrition segment will mainly incorporate the premix solutions and flavours platforms with the Dairy Nutrition segment and will focus on cheese and dairy ingredients. It will comprise the portfolios of protein solutions (currently in NS) and US Cheese as well as being the commercial partner for the Group's joint venture MWC-Southwest Holdings.
"The new structure is designed to further streamline the business, increase focus on end use markets and to provide greater insight into Glanbia’s value drivers and growth opportunities," it said.
It said it expects the new operating model to be implemented during FY 2025 and further details will be provided early next year.
"In order to maximise the benefit of this operating model change, Glanbia is commencing a group wide transformation programme designed to fund and enable the next phase of growth," the company said.
"The programme will focus on identifying opportunities to enhance productivity and drive efficiencies across operations, accelerating digital transformation and ensuring the Group is well positioned to capitalise on future market growth opportunities," he added.
Hugh McGuire, the company's chief executive Officer, said that Glanbia continued to deliver good momentum during the third quarter, driven by revenue growth across its portfolio of better nutrition brands and ingredients.
"Volume growth was driven by our protein growth brands Optimum Nutrition and Isopure, as well as premix and protein solutions," he noted.
He said the company's planned new structure is designed to further streamline the business, sharpen its focus on its end use markets, and position it for the next phase of growth.
"As part of this change in our operating model, we are commencing a group wide transformation programme which will allow us to fund and drive growth in our business, supporting our ambition to maximise long-term value for shareholders," he added.
The company today also announced an additional €50m share buyback authorisation which the CEO said reflects its strong cash flows and balance sheet position further increasing its returns to shareholders.
"Looking ahead to the remainder of 2024, we will continue to focus on delivering growth across our portfolio and we are reiterating our full year guidance of 5% to 8% growth in adjusted EPS," he added.
Shares in the company were lower in Dublin trade today.
