Siobhán Talbot, Group Managing Director of Glanbia
Glanbia delivered strong revenue growth in 2019 with revenue increasing by 16.6% to €3,876 million. The drivers of revenue growth included a 6.6% increase in pricing, a 9.9% contribution from acquisitions with overall volume broadly in line with 2018. Price and volume growth was driven by a good performance from GN with the acquisitions of Watson and SlimFast also performing well in 2019.
The ability of governments and medical agencies to contain the spread of the COVID-19 virus will be important in preventing unexpected supply chain disruptions which could result in restrictions on the importation of key raw materials and/or negative impacts on Glanbia’s international sales channels. While appropriate safety stocks are in place for core raw materials, a prolonged impact to the supply chain would have negative consequences from both a supply and pricing perspective.
Commenting on the results, Siobhán Talbot, Group Managing Director said:
“Glanbia has delivered a 16.6% increase in revenues in 2019, driven by a strong performance from our Glanbia Nutritionals (“GN”) segment, and by the acquisitions of SlimFast and Watson. GN saw broad-based volume growth with notable performances in vitamin and mineral blends, and healthy snack ingredients, underlining the continued consumer shift towards health and wellness.
"It was disappointing that earnings were impacted by challenges in the Glanbia Performance Nutrition (“GPN”) segment and to address these we have conducted a comprehensive business review and are taking actions to simplify our business, allowing us to concentrate on our core brands, and optimising our routes to market across channels and geographies. As a result, we expect GPN to regain branded revenue growth momentum in 2020.
"Glanbia is financially strong and cash generative. We have increased our dividend by 10% and we are proposing to our shareholders that we adopt a share buyback programme in 2020.
"We are confident that the actions being taken will position the company to generate enhanced shareholder value in a growing healthy nutrition market," she said.