Higher first-half revenues expected from Glanbia

Irish performance nutrition and ingredients group, Glanbia, is due to report half-year results on Wednesday, with higher earnings expected.

Glanbia grew its sales by 10.7 per cent to €1.3 billion in the first six months of 2014, with the group’s performance nutrition division a “key contributor” to this growth. Earnings (EBITA) increased by 10.3 per cent to €107.3 million and adjusted earnings per share grew 11.5 per cent in the six months to July 5th 2014.

Davy stockbrokers have forecast the group's first-half revenues to be in the region of €1.44 billion this year, an increase of 11.7 per cent. Davy analyst Jack Gorman said Glanbia's group EBITA is expected to be up 13.2 per cent to €121.5 million, with adjusted diluted earnings per share rising 12.2 per cent to 36 cent.

Mr Gorman said Dairy Ireland profits should grow strongly this year, supported by ongoing efficiency programmes and lower input costs.

For the Global Ingredients division of Glanbia, Davy has forecast a small year-on-year decline in first-half EBITA to €52 million from €53.9 million last year. “While management still expects the Global Ingredients division to generate improved EBITA this year, we eased back our EBITA estimates in May given the combined scale of the dairy price and FX headwinds facing the division,” Mr Gorman said.

He added that dairy pricing declined by 19 per cent in Q2 alone and is now one-third off its recent 2013 highs.

Glanbia’s Irish operation reported a 7.7 per cent decline in revenues to €353.8 million for the first-half of last year, 2.8 per cent of which was accounted for by a fall in pricing.