Earnings decline at Kilkenny based Glanbia amid 'challenges' in performance nutrition

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Siobhán Talbot, managing director

Glanbia has seen its earnings before interest, tax, and amortisation fall 8% to €276.8m in 2019 amid "challenges" in its performance nutrition business.

Revenue at the Kilkenny-based company increased by almost 17% to €3.9bn and this was driven by a strong performance from its nutritionals segment, and by the acquisitions of SlimFast and Watson.

Glanbia managing director, Siobhán Talbot, said the company had conducted a comprehensive business review and is "taking actions to simplify our business, allowing us to concentrate on our core brands, and optimising our routes to market across channels and geographies".

She added: "It was disappointing that earnings were impacted by challenges in the Glanbia Performance Nutrition segment and to address these we have conducted a comprehensive business review and are taking actions to simplify our business, allowing us to concentrate on our core brands, and optimising our routes to market across channels and geographies. As a result, we expect GPN to regain branded revenue growth momentum in 2020."

This arm of the business will now be managed as North America Performance Nutrition, North America Lifestyle, International and Direct-to-Consumer businesses.

This division has also invested in new senior talent to enhance capabilities and enable growth in each of these businesses.

During the year, Glanbia incurred exceptional items of €34.6m after tax, primarily relates to the performance nutrition segment as well as Brexit mitigation costs and acquisition integration costs in 2019.

There were no exceptional items in 2018.

With concerns around the coronavirus increasing, the company said it has put a project team to assess these threats and ensure appropriate incident and response plans are in place.

Meanwhile, Glanbia’s Joint Ventures (JVs) reported a share of profits up €3.3m to €48.6m.