In an interim management statement for the nine-month period to 2 October 2021, Glanbia has announced that it expects earnings per share to be closer to 22% than 17% and that revenues for the third quarter are up 15.7% versus 2020.

The other big news in the plc's statement is the signing of a memorandum of understanding to sell its 40% shareholding in Glanbia Ireland to Glanbia co-op for €307m.

Acquisition

The plc also announced the completion of the acquisition of PacMoore Process Technologies, a US food ingredient solutions business for $52m (€45m).

Glanbia stated that performance nutrition delivered revenue growth in the period up 23.2% on a constant currency basis, driven by strong performance nutrition consumption. Nutritional solutions delivered volume growth up 15.7% for the period. Glanbia plc stated that the LevlUp (gaming platform) and PacMoore (food contract manufacturing in Illinois and Indiana) acquisitions completed in May and September 2021 respectively are performing well.

The Group’s balance sheet shows net debt at 2 October 2021 was €589m which represents a decrease of €39m versus the net debt position at the end of the third quarter of 2020.

Revenue growth

Siobhán Talbot, group managing director said: “In the first nine months of 2021 Glanbia grew its wholly-owned revenue by 15.7% on a constant currency basis. This was driven by strong demand across our portfolio as GPN grew like-for-like branded revenue by 25.2% and NS grew like-for-like volume by 15.7%. We continue to make progress on our strategic initiatives. GPN’s transformation programme is running to schedule and NS completed the acquisition of PacMoore, a US based ingredients solutions business.

"The group continues to navigate the various impacts of the COVID-19 pandemic well, delivering strong volume growth in the third quarter, with our plants operating to plan and price increases implemented in response to cost inflation. We are focused on progressing our ESG agenda, working towards emissions reductions and implementing our diversity and inclusion strategy.

"The strong third quarter gives us confidence for the remainder of the year and we expect full year 2021 adjusted earnings per share growth to be at the upper end of the previously guided range of 17% to 22%, on a constant currency basis. As we exit 2021 we will maintain our focus on driving top line growth and are planning further pricing actions for early in 2022 in response to the continued inflationary environment.”

Outlook

Glanbia has delivered strong revenue growth in the first nine months of 2021 which is expected to continue in the fourth quarter, driven by underlying consumer demand trends across key health and wellness end markets. Glanbia now expects full year 2021 adjusted EPS to be at the upper end of the previously guided range of 17% to 22% on a constant currency basis. Glanbia also expects to deliver financial year 2021 operating cash conversion ahead of the targeted 80% level.