Glanbia Q1 2025 financial performance ‘in line with expectations'
In the three months ended April 5, 2025, wholly-owned revenue increased by 7.2% compared to the same period in 2024.
The group said that the main drivers of the revenue increase were a price increase of 5.2% and an increase of 2.7% from acquisitions, partially offset by a volume decrease of -0.7%.
Glanbia's net debt at April 5, 2025 was $578.8 million, an increase of $289.4 million compared to Q1 2024.
This primarily relates to the acquisition of Flavor Producers, which closed in April 2024. At the end of the period the group had committed debt facilities of $1.3 billion.
Glanbia
Performance Nutrition (PN) revenue decreased by 6.6% in the first three months of 2025, driven by a volume decrease of 5.8% and a price decrease of 0.8%.
'Excluding SlimFast and Body & Fit, which have been designated as non-core and following a decision to exit the businesses, PN revenue declined by 4.8%,' Glanbia said.
In February, the company announced that it that it was selling its weight management brand SlimFast and direct-to-consumer e-commerce business Body & Fit.
The volume decrease primarily related to lower revenues in the club and specialty channels in the US as well as the continued negative impacts from non-core brands, with PN Americas revenue declining by -13.2% and PN International revenue increasing by 6.1%.
'Whey protein isolate has come off its peak pricing seen earlier this year and whilst pricing still remains elevated, the group has good visibility of input costs through the end of the year, in line with previous expectations,' Glanbia said.
Source: Glanbia
The Health & Nutrition division saw revenue increase by 24.9%, driven by a 6% increase in volume, a 0.4% decrease in price, and an increase of 19.3% from the impact of the acquisition of Flavor Producers.
The volume growth was driven by a strong performance in both the premix and flavour solutions businesses.
Dairy Nutrition, which is the number one producer of whey protein isolate and the number one producer of American-style cheddar cheese in the US, reported a revenue increased by 18.9%.
This was driven by a 3.6% increase in volume and a 15.3% increase in price.
Costs
Glanbia said that it is focused on executing its three-year 'transformation programme' which is expected to generate annual cost savings of at least $50 million by 2027.
The group said this will be achieved 'by driving efficiencies across the new operating model which will support the next phase of growth through three focused divisions'.
Dairy Nutrition is on track to become a standalone business by July 1, 2025 with a new chief executive and leadership team.
Hugh McGuire, chief executive officer Glanbia, said that the company had 'delivered a resilient performance during the first quarter by delivering group like-for-like revenue growth of 4.5%'.
'Our Health and Nutrition and Dairy Nutrition segments delivered a strong performance.
'As previously announced, Performance Nutrition is facing short-term challenges in the US club channel and we are offsetting this by delivering good growth in our online and food, drug and mass channels and international markets, which is supported by a strong innovation pipeline.
'We have made good progress on our group-wide transformation programme which is focused on delivering efficiencies, optimising our portfolio and maximising long-term value for shareholders.
'Significant efforts have been made to reduce the impact of input costs on the group.
'We now have good visibility of costs to the end of the year and we are reiterating our margin expectations for PN,' he said.
'With the first quarter having progressed as planned, and whilst noting the ongoing uncertainty in relation to direct tariffs, we are pleased to reiterate our 2025 full year guidance of adjusted EPS2 in the range of 124 $cent – 130 $cent (-11% to -7% constant currency),' McGuire added.
Glanbia's sports nutrition business Source: Glanbia
The group commenced an initial €50 million share buyback programme on December 16, 2024.
Between December 16, 2024 and April 29, 2025, Glanbia said that it returned €42.7 million to shareholders, repurchasing 3,489,320 ordinary shares on Euronext Dublin at an average price of €12.23.
The buyback will be temporarily paused as the percentage of the group's issued share capital held by a significant shareholder is approaching 29.99%.
The group is expecting to recommence the share buyback programme during the second quarter of 2025.
Glanbia is holding its annual general meeting (AGM) at 11:00a.m. today at the Killashee Hotel, Naas, Co. Kildare.
Senan Murphy will join the group's board as a non-executive director. He will become chair of the sustainability committee on appointment.
Earlier this week, an activist investment company, which is a shareholder in Glanbia, wrote to the board of Tirlán seeking support for a 'fundamental strategic review focused on separating Glanbia's distinct business units'.
Clearway Capital, the German-based investment firm established in 2021 by Gianluca Ferrari, acquired a minority stake in Glanbia almost three years ago.
Tirlán, the farmer owned dairy co-op, is the largest shareholder in Glanbia with a 29% stake in the global nutrition company.
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