Revenues up at Glanbia but profits take a dive
Waterford’s multinational nutrition and dairy group Glanbia PLC saw revenues rise but profits decline as it announces its 2019 annual report.
The company reported revenues of €3.9bn in their full results released today, up 16.6% on 2018. However, profits dropped by €53.8m to €180.2m, a 23.1% decline, which the company put down to a declining performance nutrition business.
Despite this, Glanbia are looking to increase revenues by 50% over the next 24 months.
Managing Director of the Glanbia Group, Sinead Talbot while saying the results were in line with the adjusted expectation over 2019, they are still disappointing. She says the company will look to implement new measures to drive growth.
“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.
Successful Glanbia brands such as Optimum Nutrition and SlimFast, which had combined sales of close to $1billion and Glanbia will focus on these successes and possibly exit some of their unprofitable businesses.
The company’s shareholder dividend increased by 10% to 15.94 cent per share. While the process has statered to identify a new chairperson of Glanbia Co-op, to replace the retired Martin Keane.
The company is looking to grow its revenues by 50% over the next two years to €6bn but is aware there are numerous risks associated with a forecast like this.
“Increasing competition, tariffs, currency volatility and channel shifts contributed to decreased sales volumes in 2019, particularly within GPN international markets,” Ms Talbot said.
“While the disruption threat remains in some of Glanbia’s markets, it has reacted appropriately by working to better manage its routes-to-market, channel mix and by implementing a stock keeping unit (SKU) rationalisation project to reduce the tail of under-performing SKUs.
“The continued execution of these programmes and effective implementation of the GPN focus areas in 2020 is important to ensuring a positive overall impact on revenue and margin.”
She added the company will be mindful of the threat of trade tariffs, concentration into specific markets, and supply chain disruptions impacting the importation of raw materials in respect to the Coronavirus outbreak.