Shares in global nutrition group Glanbia were up over 6pc in Dublin on Thursday morning after the company reported a strong start to the year.
Glanbia has seen its revenue increase in the first three months of 2021, driven by both its Performance Nutrition (GPN) and Nutritionals (GN) business.
The company reported revenue growth of 10.5pc in constant currency in the three months to 31 March when compared to the prior year, according to a trading update.
As retail markets re-open, the Kilkenny-headquartered group said there is “strong underlying demand for Glanbia's health and wellness focused portfolio, which is continuing into the second quarter.”
GPN delivered revenue growth in quarter one of 14.1pc on a constant currency basis, with like-for-like branded revenue growth of 17.6pc, which was largely driven by strong demand in North America and Asia Pacific.
The company’s Nutritional Solutions delivered volume growth in the three-month period of 10.3pc driven by “strong customer demand” for vitamin and mineral premix products and solid trends in dairy solutions.
Glanbia has experienced strong operating cash flow so far this year, and net debt at the end of March was €498.5m, a decrease of €191.6m versus the net debt position in the prior year.
Siobhán Talbot, managing director of Glanbia, said: “In the first quarter of 2021 Glanbia's revenues increased by 10.5pc, constant currency, versus the prior year.”
“While the strong underlying demand for Glanbia's health and wellness focused portfolio is continuing into the second quarter we remain vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic,” Ms Talbot added.
The company expects adjusted earnings per share for the year to be in the upper end of the previously guided range of 6pc to 12pc growth on a constant currency basis.
Jason Molins, analyst at Goodbody, said the strong quarter one performance “is also despite more challenging prior year comparatives and leaves Glanbia well positioned for the remainder of the year, particularly given the current backdrop on the vaccine rollout and reopening of markets.”
“We are likely to upgrade our [financial year] FY21 forecast by at least 2pc from our initial expectation of circa 9pc constant currency EPS growth,” Mr Molins added.
