Shares in nutritional supplements company Glanbia rose 10 percent on Wednesday after the company revised up its profit forecast for the current year and said it had overcome the difficulties that sent the shares to a two-year low in February.
Glanbia expects full-year earnings per share to be between $1.30 and $1.33 on an adjusted basis, up from its previous forecast of $1.24 to $1.30. The company earned $1.40 per share last year.
The Kilkenny firm separated from the Tirlán co-operative in 2022 to focus on international business, with a particular focus on the US market.
The organisation noted “significant growth” in the healthy food and dairy segments, as well as “continued improvement” in dietary nutrition.
Glanbia CFO Mark Garvey said in an interview after the results were released that he was not seeing any weakness among US consumers and that the impact of tariffs was “manageable”.
“You never know in the market when things are going to change, but I definitely feel a lot more optimistic than I did three months ago,” Garvey said.
Mark Garvey
In February, Glanbia said its profits had fallen, partly due to rising prices for whey protein, a key ingredient in protein powders and shakes popular with fitness enthusiasts. Garvey said whey protein prices were likely to fall next year as new production facilities came on line.
Garvey added that in April the company reported a decline in revenue from sales of sports nutrition products in U.S. club retail chains and specialty channels, but in the second quarter of the year there was positive growth in volumes and prices in these segments.
“We're going to handle the challenges in the club channel,” Garvey said.
The organization also introduced Paul Duffy, former chairman and CEO of Pernod Ricard North America, as the new chairman, replacing Donal Gaynor, who will step down from the role at the end of the year.
Glanbia shares were trading at €13.54 on Wednesday morning, up 47 percent from a low of €9.20 hit on April 9.
Sourse: breakingnews.ie
