The company has been facing declining sales volumes and inflationary pressures, and it hopes that further price hikes may offset these challenges.
Last year, Glanbia implemented price increases of 16.4% across its products in the Glanbia Performance Nutrition division. Despite a 3% decline in sales volumes, the company still recorded its “highest ever annual earnings.”
Glanbia’s Financial Results
In 2022, Glanbia’s revenues rose to €5.6bn, representing an increase of more than 21% on a constant currency basis compared to 2021. The company’s profit after tax reached €257m, up from €167m in the previous year. The positive results were boosted by the strong performance of its Optimum Nutrition brand, which saw a 31% increase in US consumption.
Siobhán Talbot, Glanbia group managing director, expressed confidence in the company’s future, stating, “Our strategic focus on better nutrition growth platforms is clear, and we are confident that it will drive sustained growth in the coming years.” Glanbia returned €173m to shareholders through share buybacks in the year and announced a further €50m share buyback programme.
While Glanbia’s financial results are positive, the company is bracing for potential headwinds this year. Supply chain shocks, in particular, are a major concern. The company has some “safety stocks,” but it acknowledges that a prolonged impact to supply chains due to another pandemic or geopolitical tensions could have negative consequences from both a supply and pricing perspective.
Leprino Foods to Acquire Glanbia Cheese
In addition to publishing its annual earnings, Glanbia announced that Leprino Foods will acquire full ownership of Glanbia Cheese, a leading mozzarella maker in Europe.
Glanbia expects to receive more than €160m for the sale of its stake in the cheese business, with the possibility of an additional €25m over the next three years dependent on business performance.
Glanbia’s record earnings in 2022 are impressive, but the company faces significant challenges ahead. While it is considering further price hikes to offset declining sales volumes and inflationary pressures, supply chain shocks are a major concern.
Nevertheless, Glanbia’s strong financial position, confidence in its strategic direction, and shareholder returns through share buybacks bode well for the company’s future.