Glanbia PLC held its AGM this week in Kilkenny while also reporting strong quarter one results for 2014. Revenues were up 17%, driven by 7% increase in volumes and 9% increase in pricing, while 1% related to acquisitions.

Global performance nutrition continues to drive the business, with turnover up 38% as a result of increased volumes. With whey prices increased since late last year, they said they are able to pass on price increases to customers.

Siobhán Talbot, group managing director, said that “the overall outlook for the remainder of the year is positive and we maintain our guidance of 8% to 10% growth”.

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Revenues in their largest division, global ingredients, increased 10%, mainly as a result of price increases. The group said that the milk purchasing environment remained competitive in the US, with volume down 9%.

Their US cheese business also saw a decline in volumes and reflected the milk availability issues in Idaho. Glanbia has reacted by putting in place longer-term milk arrangements with suppliers to ensure continuity of supply. Talbot also commented that there are signs of increasing milk supply in the USA as producers respond to record high milk prices.

Conditions remain challenging in their dairy Ireland division, while their joint ventures were 27% ahead of last year due to higher dairy pricing and a light increase in volumes.

Glanbia recently announced it will export the Avonmore brand out of Ireland, having recently commissioned the new ultra heat treated (UHT) plant in Carrickmacross.

Glanbia also said there was strong demand for fertilizer in the period. However, feed sales were lower due to better weather.

The first shipment of oats from the new Portlaoise mill was recently sent to Sturm Foods in the USA.

The group expects to incur organic capital expenditure of between €120m to €130m during 2014 and the group commented that they would look at direct dairy opportunities in GIIL or in the US.

The Capital Group, the US based investment company, has further increased its shareholding in Glanbia.

Since the start of the year, it has increased its shareholding from 5% to just over 7%, by purchasing over 6.1 million shares in the ingredients and nutrition group.

The Capital Group is the second-largest shareholder in the company after the Co-op, which now owns 41.3% and continues to rebalance its portfolio towards food groups recently.