Glanbia

The once golden child of the Irish agrifood sector is struggling and the share price has been the worst performing of all agribusiness shares on the Irish stock market this year as investors walk. The profit warning in July was the first sign of cracks appearing in its strategy. The company blamed weak economic conditions in South America and trade tensions between the US and China for the poor performance. But it could be much more significant as consumers shift from buying sports nutrition products from traditional stores to online. Profit margins have been slipping and are now down under 8% as prices have come under increased pressure from intense competitive behaviour. Volumes have also suffered. All eyes will be on how effective price increases have been in the second half of the year and what impact (if any) that has had on volume.