Glanbia - Interim results in line with expectations; FY guidance reiterated

Davy Research
/Read Important Disclosures

As anticipated, Glanbia’s performance reflects a period of intense product and channel investment against a backdrop of softer dairy markets. Good volume growth was achieved across both core platforms, with full-year volume targets being reconfirmed. Margin compression in GPN is expected to unwind through H2 as input cost tailwinds accrue. Glanbia’s visibility over input costs and product pipeline affords it confidence to reiterate its FY guidance across all key metrics. We anticipate a modest upward revision to our FY 2018 EPS forecast.