Glanbia issues cautious first quarter report
Global nutrition group Glanbia has issued an Interim Management Statement for the first quarter of the year, reporting continued demand across both Glanbia Performance Nutrition and Glanbia Nutritionals products.
The statement was issued in conjunction with the plc’s Annual General Meeting being held today.
Wholly owned revenues at Glanbia, which has a processing plant at Virginia, are up 17.0% on a constant currency basis versus prior year due to the “good demand”, the report states.
“Overall demand in our key end markets was positive in the first quarter, however greater volatility in consumer shopping behaviour was evident in recent weeks arising from Covid-19 and due to uncertainty of duration and impact of this pandemic, full year 2020 financial guidance is withdrawn,” the report states.
Glanbia says that the company's priorities during the Covid-19 pandemic is to “protect our people, provide essential food supplies and maintain our strong financial position.”
To date all of Glanbia's plants have largely operated to plan and maintained supply, and the firm thanked employees, customers and suppliers around the world, in particular to their frontline staff and families who continue to give enormous commitment to keep our supply chain and operations running. “As an essential service, the food industry has a critical role to play and we are very focused on continuing to serve our consumers, customers and communities through this global crisis,” said Siobhán Talbot, Group Managing Director.
In response to the Covid-19 pandemic the Group put in place business continuity planning teams with three priorities: protect the health and safety of employees, continue supply of food and maintain the Group’s strong financial position.
Glanbia says it remains focused on delivering its Group wide strategic initiatives as outlined in February 2020.
GPN organisational changes and SKU rationalisation have been largely progressed.
The exit of contract manufacturing in North America remains on track, and given the Covid-19 restrictions currently in place, the pacing of some of the projects relating to Group wide initiatives and GPN route to market may alter.
Although the Group has traded well in Q1 2020, demand became more volatile at the end of the quarter and into April particularly in GPN. Therefore the business states that it is extremely difficult to assess the impact and duration of Covid-19 and therefore it is prudent for Glanbia to withdraw its 2020 full year financial guidance issued on February 26, 2020.
“As an organisation Glanbia is highly focused both on navigating the current challenges and emerging strongly to capture growth opportunities that will become available. The majority of the Glanbia portfolio is exposed to health and wellness trends and in growing channels which is positive for long term growth. The financial strength of Glanbia and the commitment of its people, positions the Group well for the future.”
A process to identify a successor as Chairperson of the plc meanwhile commenced earlier this year. A sub-committee of the Board, led by Dan O’Connor, Senior Independent Director, was established. External advisors were appointed to assist the sub-committee in the selection process which is progressing well.
Due to restrictions in Ireland to limit the spread of Covid-19 the company's AGM today is being held at the Company’s head office in Kilkenny, Ireland and is a closed meeting.
Shareholders who wish to follow the proceedings of the AGM can do so by listening via a teleconference and later today the results of the resolutions relating to the AGM will be published. All details relating to the AGM can be found on the Company’s website: www.glanbia.com/agm