(Alliance News) - Glanbia PLC on Wednesday posted a first-half revenue climb as Covid-19 lockdowns meant consumers were even more conscious of their health and weight management.
In the six months to July 4, the Irish nutrition firm's revenue climbed 4.5% to EUR1.84 billion from EUR1.76 billion. Pretax profit did fall however, by 36% to EUR58.4 million from EUR91.7 million a year earlier.
Exceptional costs, mainly down to reorganisation expenses, surged to EUR14.6 million from EUR3.5 million. Also hurting Glanbia was a EUR24.1 million loss in currency translation differences, compared to a EUR9.7 million gain a year ago.
Glanbia noted that it generates over 90% of its earnings in dollars, but the Kilkenny-based firm's reports in euro.
The company kept its dividend at 10.68 cents per share for the half and noted its payout ratio remains unchanged. Covid-19 has led to some firms withdrawing, postponing or even cancelling dividends altogether.
Glanbia's first-half, the second quarter especially, coincided with strict lockdown measures being imposed by governments to combat the spread of the contagion.
"Many of the trends that are aligned with the group strategy were accelerated by the pandemic. Consumer focus on health and wellness has deepened, in particular in the areas of weight management, general health and immunity. Lockdowns closed certain routes to market across the globe and caused a surge in e-commerce as well as increased shopping in mass and club retail as consumers compensated for a decline in out of home consumption," Glanbia said.
The company has so far decided against offering annual guidance due to Covid-19 uncertainty.
Shares were 6.7% lower at EUR9.00 each in London on Wednesday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Glanbia (GLB)