Glanbia has announced plans to split its nutritionals business in two alongside a “group-wide transformation programme”.
Its nutritional unit will be split into two new segments - health and nutrition and dairy nutrition. The Irish company said the new structure was designed to “further streamline our business, sharpen our focus on our end use markets, and position ourselves for the next phase of growth”. The division generated just over $3.63 billion (€3.37 billion) last year.
It added that as part of this change, it was commencing a “group-wide transformation programme which will allow us to fund and drive growth in our business”.
“The new structure is designed to further streamline our business, sharpen our focus on our end use markets and position ourselves for the next phase of growth,” said chief executive Hugh McGuire.
The new operating model is expected to be implemented during the next financial year, with further details provided in early 2025.
Revenue at Glanbia rose 6 per cent in the first nine months of the year, driven by a rise in volumes and the impact of disposals and acquisitions. The company reiterated its full-year guidance for growth in adjusted earnings per share of between 5 per cent and 8 per cent
The company also announced an additional €50 million share buyback for next year, adding to the ongoing €100 million share buyback that has already scooped up €88.6 million to date.
US cheese revenue increased by 6.1 per cent, driven by a 0.7 per cent decrease in volume, a 3.9 per cent rise in price as a result of pass-through pricing and an increase of 2.9 per cent driven by the impact of a 53rd week.
“Glanbia continued to deliver good momentum during the third quarter, driven by revenue growth across our portfolio of better nutrition brands and ingredients. Volume growth was driven by our protein growth brands Optimum Nutrition and Isopure, as well as premix and protein solutions,” said chief executive Hugh McGuire.
The Glanbia Performance Nutrition division saw revenue growth of 1.7 per cent, while the Glanbia Nutritionals unit saw revenue surge 14.4 per cent, with half of that attributed to acquisitions.
“Looking ahead to the remainder of 2024, we will continue to focus on delivering growth across our portfolio,” Mr McGuire said.
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