Glanbia Increases Profit Forecast Amid Surge in Protein Product Demand
Overview:
Nutrition supplement maker Glanbia has raised its full-year profit forecast following a notable increase in demand for its protein products, particularly from customers using them alongside weight-loss medications.
Key Highlights:
- Sales Growth: Glanbia’s Optimum Nutrition brand saw a 25% rise in first-half sales, despite implementing two price hikes since November.
- Market Trends: Protein powders and shakes, previously popular among gym-goers, are now widely available in supermarkets and recommended for GLP-1 weight-loss drug users to boost protein intake.
- Demand Surge: Glanbia’s finance chief Mark Garvey noted a correlation between the increase in GLP-1 drug usage and the rising demand for protein products.
Financial Outlook:
- Glanbia predicts higher-than-expected revenue growth across all its nutrition divisions.
- The company expects a continued double-digit rise in the cost of whey, essential for protein products.
- Another price increase for Optimum Nutrition is anticipated this quarter, likely affecting demand growth slightly in the latter half of the year.
- Adjusted earnings per share are projected to grow by 17% to 20% this year, up from earlier guidance of 7% to 11%.
Market Reaction:
- Shares of Glanbia have nearly doubled over the past year, reflecting strong investor confidence; they were up 6.1% in morning trading following the forecast update.
For more details on related industry developments, check out the article on Diageo’s €860 million cost-cutting plan here.
