Glanbia’s end of year results has surpassed both forecaster and Glanbia officials’ expectations for the year. Spokespeople for the company have based the positive performance on continued trust in the brand and the quality of products they produce.
They also commented positively on the continued global trend of health and wellness being contributing factors to the company’s success.
As news of the announcement spread share prices rose between 8 % and 11% throughout the day though it finished in negative territory noted RTE.
The Irish company which produces protein, cheese and nutritional products had forecast share earnings of between 5%-8% but exceeded this by reaching 9%.
“Glanbia’s FY results confirm a strong finish to 2018 and were ahead of forecasts at the revenue, EBITA (earnings before interest, taxes, and amortization) and EPS reporting lines,” Davy Stockbrokers reported Checkout.ie.
Along with this announcement came the news that Glanbia had purchased U.S based ingredients solution company Watson for 89%. This is a step in a different direction for the company as this has no diary affiliations whatsoever. There were also announcements for possible additional acquisitions throughout 2019.
Who is Glanbia
For those who do not necessarily work in the Agricultural industry, Glanbia might not be of much significance. But the growth and expansion of this company is one of pure business acumen and foresight. Glanbia is one of the world largest producers of health, nutritional, dairy food and cheese ingredients.
Founded in 1997 by the amalgamation of two food producing companies in Kilkenny. Glanbia has expanded its operations in 32 countries and produces products sold and consumed in over 130 countries.
With holdings in chess production, sports nutrition products and acquisitions of new and existing nutritional companies, Glanbia is most definitely an Irish success story.
A previous acquisition included Slimfast which it purchased for $350 million in November.
“Watson is a non-dairy ingredient solutions business headquartered in Connecticut, USA. It is a highly complementary addition to our Nutritional Solutions business and will help broaden our capabilities in the ingredients sector,” Glanbia Group Managing Director, Siobhán Talbot, said.
She continued by commenting on the positive results for the Glanbia “Consumer demand for our brands and nutritional ingredients remain strong underpinned by positive long-term global health and wellness trends”.
“The outlook for 2019 is positive and Glanbia expects to deliver 5% to 8% growth in adjusted earnings per share, constant currency,” she added.
Elsewhere, and Glanbia announced plans to reorganise the composition of its board of directors this year with the appointment of three new independent non-executive directors to its board.
In November 2018 Glanbia paid in the region of $350m for Slimfast. This company is known for producing weight-loss and health and wellness, shakes, bars and snacks reported the Independent at the time
They managed to secure Slimfast at a bargain price from its owners Unilever and Kainos Capital. At one point in the early 2000s, Slimfast was valued at over $2 billion.
Following Unilever takeover of the company in 2000 the value of Slimfast declined rapidly making Glanbia’s bargain purchase possible.
Slimfast’s sales had slumped 20pc in 2004, hit by the popularity of the Atkins Diet and other popular weight loss brands.
While it remained part of Unilever group, they sold a majority stake of the company to Kainos capital in 2014.
Even with these difficulties at the time of purchase Glanbia’s appeared positive about the purchase and the brand’s addition to the Glanbia brand.
Siobhan Talbot said at the time “It plays to global consumer trends focused on convenient formats and snacking,” she said. “The transaction is in line with our strategic ambition to extend the reach of our Glanbia Performance Nutrition portfolio to related consumer needs.”
The positive performance and acquisitions by Glanbia in 2018 are all showing positive signs for the company even in the shadow of Brexit.
Due to large scale diversity in the brand and the strong industry indicators one can only surmise that 2019 will be another great year for Glanbia. With a larger market share and stronger purchasing power, the company’s heads seem capable of taking on any new challenges.
It was also announced late yesterday evening that former Nestle and Coca Cola top staff have moved over to Glanbia as reported in Agriland. With excellent marketing and branding personnel from such companies joining it can only be assumed that Glanbia has more plans for expansion.