Irish food giant and dairy processor Glanbia has strongly improved its results for the first half of the year compared to the same period last year. Products such as sports drinks were especially popular, so that profits skyrocketed.
The company's sales grew 20,3% compared to the first half of 2020. The growth was mainly driven by strong demand for products from Glanbia's Performance Nutrition portfolio. These products serve consumer markets related to sports and lifestyle. The Nutritional Ingredients branch of the company also performed well. Glanbia's turnover amounted to approximately €2,05 billion.
EBITA and cash flow significantly higher
In addition to increasing sales, the company also managed to increase its margins. All this leads to a significantly higher profitability. The company's EBITA (net profit before interest, tax and depreciation) is close to €160 million. That is 88% higher than a year earlier.
The significantly improved results resulted in, among other things, considerably higher investments. In the first half year, the company invested almost €40 million. That was about 25% more than the €30 million in the first 6 months of 2020.
Shareholders also benefit from the strong results across 2 tracks. First of all, the interim dividend will be increased by 10% to €0,1175 per share. Second, the company is launching a €50 million share buyback program.
Outlook
Glanbia is also positive for the rest of the year, although the higher costs may put some pressure on margins. For the full fiscal year 2021, the company now expects to grow its earnings per share from 17% to 22%. In 2020 this amounted to €0,7378 per share.
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