In its first-quarter performance update, Glanbia has reported a decline in overall group revenue of 3.3% (constant currency) for the three-month period to 2 April as weak dairy markets weigh on sales prices. Excluding joint ventures and associates, sales were back 1.9% in constant currency terms.

The group said that a partial increase in sales volumes for the quarter of 0.5% along with sales contributions from acquisitions of 3.4% only partially offset price declines of 5.8%, as dairy markets endured a difficult start to 2016.

Despite the weak market situation and the first-quarter drop in sales, Glanbia reiterated its full-year guidance of 8% to 10% adjusted earnings per share (EPS) growth for 2016.

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Positive outlook

Glanbia chief executive Siobhan Talbot described the first three months of the year as a “good performance” for the business.

“Our ongoing strategy of building a business to deliver better nutrition via consumer brands and high-quality ingredients has mitigated the impact of weak dairy markets. The outlook for the remainder of 2016 is positive and we reiterate our full-year guidance of adjusted earnings per share growth of 8% to 10% on a constant currency basis,” added Talbot.