Glanbia reported like-for-like revenue growth of 9.9% in the nine months to the end of September which was substantially driven by the company’s Performance Nutrition segment. Sales of its key Optimum Nutrition brands increased by 25.8%, with the company saying that category growth, market share gains, new distribution, innovation and pricing all added to the increase in revenue. Revenue increased 9.8% in Glanbia’s Health & Nutrition and 2.1% in its Dairy Nutrition segments.
The company, in its interim management statement published on Wednesday, said that it expected adjusted earnings per share growth of between 22% and 24%, a significant upgrade from the previously guided 17% to 20% range. Full-year like-for-like revenue in Performance Nutrition is expected to be between 16% and 17%.
Glanbia’s Dairy Nutrition segment saw volume growth and pricing growth supported by consumer trends, particularly in the high-protein ready-to-eat and healthy snacking categories. Price increases in dairy protein solutions were “partially offset by negative pricing in cheese markets”.
Hugh McGuire, Glanbia CEO, said that the company is “uniquely positioned to capitalise on favourable category dynamics and sustained consumer demand for our products”.
In a call with analysts following the announcement, McGuire faced several questions on how recent developments in whey pricing, which saw a very strong rally to September this year before rapidly turning lower, will affect the company’s performance into 2027.
“Fundamentally, a whey price drop is good for the group. We are a far bigger buyer of high-end whey proteins than we are a manufacturer,” McGuire said, adding on pricing that there was “a record spike in prices in quarter three” and while that price has fallen “it is now only back to where it was earlier this year and is still substantially ahead of last year and long-term averages”.
He added that he does not see that Glanbia is at any competitive disadvantage with regard to whey supplies to companies that are buying the whey on the spot market currently.
On the outlook for whey pricing, particularly whey protein concentrate at 80% (WPC-80), McGuire said that the drop from the recent record high was driven by three things. There have been some reformulations of products to use different protein variants, which has reduced some demand. McGuire said, however, that there is a limit on how much of that can be done. The high WPC-80 whey prices saw some manufacturers switch from other whey variants into WPC-80 to take advantage of those prices, which increased supply. He said that those manufacturers are now switching back to other variants.
Finally, McGuire said that “the long-term fundamental demand for protein remains strong”.
Shares in Glanbia traded 6.7% higher, topping €21, in the hours after the release of the interim management statement.
