The investor day for the Glanbia Performance Nutrition (GPN) business in London on Wednesday was described by Davy Stockbrokers business analyst Jack Gorman as “upbeat” which should be a “supporting catalyst for a share price rebound”.
Share prices have remained fairly volatile, with peaks of €19.55 reached last July and lows occurring of €15.60 and €15.66 in October and February respectively. Earlier this month, shares in the group fell by 9% in two days to €16 following the company’s interim management statement.
However, Gorman said that Glanbia delivered a “reassuring message” on its prospects for the 2016 financial year on Wednesday.
“The brand portfolio is developing good balance as regards format, channel and regional spread. New product development is particularly vibrant this year,” he said.
Glanbia aims to deliver earnings growth of 8% to 10% in 2016. Davy Stockbrokers believes that the ambition to continue to outperform market growth rates is “eminently achievable”.
Gorman said that this can be done off a mid-teens margin target, which has benefitted from improved product mix and operational efficiencies. He also said that mergers and acquisition activity needs to be factored in which has been “a hallmark of GPN progress in recent years”.
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