Food group Glanbia has reported increased revenues of $3.8 billion for 2024 while warning that a global tariff war could impact its ability to source key raw materials and distribute product..
The Kilkenny-based company also announced that it plans to sell its underperforming SlimFast brand, seven years after it bought it for $350 million.
The dieting brand has struggled recently with the advent of weight-loss drugs such as Ozempic. Last year Glanbia reported a non-cash impairment charge of $91.4 million relating to the SlimFast brand reflecting “continuing challenges in the diet category”. Glanbia’s body and fit e-commerce business has also been deemed non core and is to be sold off.
In its latest full-year results, the company said revenue increased by 5.8 per cent to $3.8 billion last year helped by double-digit sales growth in Glanbia’s leading sports nutrition brands Optimum Nutrition and Isopure while profit after tax rose by 4 per cent to $310 million.
On the possible impact of tit-for-tat tariffs between the US and Europe, the company said geopolitical tensions and the increased risk of tariff wars “could potentially impact the importation of key raw materials and/or negatively impact on the group’s international sales channels”.
“The group is holding appropriate safety stocks for core raw materials, however a prolonged impact to supply chains, heightened inflation, occurrence of extreme weather events and natural disasters, or a geo-political event in a key trading region would have negative consequences from both a supply and pricing perspective,” it said.
Based on current market conditions and the existing uncertainty in the geopolitical environment, the company said it expects full-year adjusted EPS to be in the range of 124 -130 cent.
“In 2024, Glanbia delivered a solid performance with revenue growth across the group, good margin expansion, strong cash generation and continued progress on the group’s strategic initiatives,” the company said.
Chief executive Hugh McGuire said the strong performance was “driven by growth across our portfolio of better nutrition brands and ingredients.”
“We continue to evolve and optimise our portfolio, which included the acquisition of Flavor Producers in April and the decision to exit the Body and Fit e-commerce business and the SlimFast brand.
Mr McGuire also noted the group had “commenced a multi-year group-wide transformation programme to drive efficiencies and support the next phase of growth.”
The board recommended a final dividend per share of 23.33 cent (euro); representing a total 2024 dividend of 38.97 cent; a 10 per cent increase on prior year.
