DUBLIN (Reuters) -Shares in nutrition supplement maker Glanbia opened 10% higher on Wednesday after it increased its full-year earnings outlook and said it was overcoming challenges that pushed its shares to a two-year low in February.
Glanbia said it expected full-year earnings per share of $1.30-$1.33 on an adjusted basis, up from its previous forecast of $1.24-$1.30. The firm earned $1.40 per share last year.
The U.S.-focused company reported “strong growth” in its Health & Nutrition and Dairy Nutrition businesses and “sequential improvement” in Performance Nutrition.
The company is not seeing any consumer weakness in the United States and the impact of tariffs is “manageable”, Chief Financial Officer Mark Garvey said in an interview following the release of the results.
“You never know with today’s market when you are, but certainly I feel a lot better than I did three months ago,” Garvey said.
Glanbia in February issued a profit warning, in part due to a rise in the cost of whey – a key ingredient in the protein powders and shakes popular with gym goers. Whey prices now look likely to moderate next year as more capacity comes on stream, Garvey said.
The firm in April reported lower revenue from performance nutrition products in U.S. club retailers and speciality channels, but in the second quarter of the year saw positive volumes and pricing through those channels, Garvey said.
“We’re going to pass that club channel challenge that we had,” Garvey said.
Glanbia shares were trading at 13.54 euros at 0730 GMT, up 47% from their low of 9.20 euros on April 9.
(Writing by Conor HumphriesEditing by Christina Fincher)
