Glanbia has reported increased revenues of 16.9% across the business in its third quarter results. This was driven by an 11.3% increase from the acquisition of SlimFast and Watson in the past year. Overall volumes increased 2.4% while prices were up 3.2%.

The group reported strong performance in its ingredients business (nutritional solutions) with revenues up 25%.

However, there was continued weakness in its performance nutrition business. Despite revenues up by 16.5%, prices declined by 1.4% and volumes fell by 7.9%. The SlimFast acquisition added 25.8% to revenues.

Price increase

The group said that it had implemented a price increase during quarter three, as it stated it would do at the half-year results. The statement said that like-for-like volumes in the performance nutrition business were weaker than expected in the third quarter. It highlighted key non-US markets in Brazil, Middle East and India as “remaining challenging”.

It said that these issues are likely to continue into 2020.

Glanbia expects declines of mid-to high single digit revenue declines (on a like-for-like basis) in performance nutrition for the full year. However, it expects the acquisition of SlimFast to counter these declines and overall to deliver a good revenue growth. The SlimFast acquisition is expected to have a very strong year, according to the statement.

Disappointed

Siobhán Talbot, group managing director, said she was “disappointed” with like-for-like volume performance in the performance nutrition business. She added that the group was “actively addressing the issues in these markets as they represent a compelling long-term growth opportunity”.

Shares

The group reiterated its full year guidance of adjusted earnings per share on a reported basis being in a range of 88c to 92c.

Since the profit warning in late July, shares in Glanbia are down 20% trading at around €11 this week.