Irish sports nutrition and ingredients group Glanbia (GLB) has reported a fifth consecutive year of double-digit earnings growth.
Total revenue for the year to 3 January 2015 was up 6.9% up to €3.52bn, driven by strong growth in its performance nutrition business.
Its sports nutrition division, which includes powders, which includes protein powders and drinks, revenue growth of 13.5% and a 120 basis point margin expansion to achieve a 26% increase in constant currency earnings.
Glanbia also said its ingredients arm put in a “satisfactory” performance in the context of a challenging dairy market with EBITA of €100.4m, 1.6% down on the prior year despite a 9.4% rise in constant currency revenues.
Dairy Ireland saw a 5.4% decrease in revenues, reflecting a 2.2% decline in volumes and a 3.2% impact from lower prices.
“Our focus on two scale growth platforms, global performance nutrition and global ingredients, continues to drive earnings as we leverage our market leadership and sector expertise,” group managing director Siobhán Talbot said.
“The outlook for 2015 is positive and we are guiding 9% to 11% growth in adjusted earnings per share. We continue to successfully execute our growth strategy and this positions Glanbia well for the delivery of our objectives from 2015 to 2018.”
The firm reiterated its long term guidance for organic growth of 8% to 10% until 2018 in adjusted earnings per share, constant currency and a return on capital employed of greater than 12%.
It said that continued investment in this business would ensure its sports nutrition business continues to grow, while global ingredients will improve in 2015 thanks to an improvement in dairy market dynamics and solid underlying demand across key sectors. Glanbia added that ongoing efficiency measures in Dairy Ireland would underpin a further improvement in performance.
Shares in Glanbia jumped 6.6% in morning trading to €15.63, having risen 43% year-on-year.