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Glanbia records a quarter more turnover in the first quarter
Food group Glanbia plc has had a strong first quarter of 2022. The company reports 25% higher sales compared to the first quarter of 2021. 7% of this was due to volume growth, the rest from price increases.
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The company achieved a turnover of almost €4,2 billion last year. The group is active in dairy and food ingredients, partly in Europe, partly in the US.
Cheese VS is the standout
The company achieved the strongest growth in its cheese activities in the US. This was due to a combination of an improving market with significantly higher prices and the commissioning of a new, large cheese factory in Michigan. In total, cheese sales in the US increased by more than 32% as a result.
The turnover of the Performance Nutrition and Nutritional Solutions divisions lagged behind, despite the acquisition of (parts of) other companies.
In the first quarter, Glanbia plc also added €307 million through the sale of its 40% share in Glanbia Ireland. This company was bought back by the Glanbia cooperative. In the meantime, he still retains a limited interest in Glanbia plc.
Pressure to perform even better
To make itself more attractive to investors, Glanbia plc also bought back €123 million of its own shares. However, this does not satisfy everyone. Activist investment fund Clearway Capital is putting pressure on the company to streamline its European cheese operations and separate Glanbia Performance Nutrition. This could double the market value of Glanbia, the fund believes.