Glanbia Q3 Earnings Call Highlights

Key Points

• Glanbia raised its full-year adjusted EPS growth outlook to 22%–24% at constant currency, after year-to-date like-for-like revenue increased 9.9% to $3.2 billion.
• Performance Nutrition led growth, with revenue up 18% year to date and its full-year growth outlook lifted to 16%–17%. Dairy Nutrition’s EBITDA outlook also improved to $175 million–$180 million, while Health & Nutrition maintained its forecast.
• Higher whey costs are expected to pressure input costs in early 2027, and Glanbia may consider further protein-brand price increases after assessing costs and consumer demand.

Glanbia LON: GLB raised its full-year adjusted earnings-per-share outlook after reporting strong revenue growth across its Performance Nutrition, Health & Nutrition and Dairy Nutrition businesses during the first nine months of 2026.

The company said like-for-like revenue rose 9.9% to $3.2 billion year to date, supported by volume growth in each of its three operating segments. Chief Executive Officer Hugh McGuire said the performance reflected continued execution of the group’s strategy and structural demand trends including higher protein consumption and an increased consumer focus on health and wellness.

Glanbia now expects adjusted earnings per share to rise by 22% to 24% at constant currency for the full year, up from its prior outlook. The upgraded expectation is based on stronger-than-anticipated Performance Nutrition revenue, continued earnings momentum in Dairy Nutrition, and benefits from the company’s transformation program.

Performance Nutrition leads growth

Performance Nutrition delivered like-for-like revenue growth of 18% in the first nine months, comprising 4.3% volume growth and 13.7% pricing growth. McGuire said the segment benefited from category growth, higher consumer purchasing velocity, expanded distribution, market-share gains and innovation, as well as certain shipment timing effects earlier in the year.

Volumes in the segment declined 4.7% in the third quarter, however, largely due to tougher comparisons in the U.S. following prior-year distribution gains and promotional activity that was not repeated. Optimum Nutrition, Glanbia’s largest Performance Nutrition brand, nevertheless grew volumes 0.8% in the quarter despite pricing increases of more than 20%.

Optimum Nutrition, representing 79% of Performance Nutrition revenue, posted 25.8% like-for-like revenue growth year to date. McGuire said the brand continued to outperform the protein-powder category and gain market share. U.S. consumption rose 22.9% in the 13 weeks through Oct. 3, with growth across core channels, increased household penetration and broader distribution.

Glanbia said its pricing growth reflected three price increases taken over the past 12 months, including a third-quarter increase in response to higher whey costs. Management said it has observed some elasticity in specific channels and package sizes after the price actions, but said underlying demand remained resilient, helped by the relatively higher-income profile of its consumers and the strength of its Optimum Nutrition and Isopure brands.

The company lifted its full-year Performance Nutrition revenue outlook to 16% to 17% like-for-like growth at constant currency. It expects fourth-quarter volumes for both the segment and Optimum Nutrition to be broadly consistent with third-quarter rates, although it noted a tougher comparison in international markets.

Performance Nutrition EBITDA margin is expected to improve in the second half from the first half, aided by pricing actions. For the full year, Glanbia continues to expect margin progression from the 13% EBITDA margin reported in 2025, while maintaining brand investment. Marketing spending will be about 6% of revenue this year, CFO Mark Garvey said, representing a significant increase in dollar terms as revenue expands.

Whey costs remain a focus for 2027

Management said it had seen some easing recently in prices for one high-end whey variant, following a sharp spike during the second and third quarters. McGuire said that variant’s pricing had returned to approximately where it was earlier in the year but remained above prior-year and longer-term averages. The company said prices for other whey variants had not experienced the same decline.

Glanbia has substantially procured its estimated whey requirements for the first half of 2027 through a layered procurement process, but said it retains flexibility in its purchasing. Garvey said input costs are expected to be higher in early 2027 than in 2026, though he said it was too early to quantify the increase.

The company expects to consider additional pricing actions for protein brands during the first half of 2027 after gaining more visibility on full-year whey costs. McGuire said Glanbia would continue to monitor consumer demand, competitive activity and input costs before determining the timing and scale of any increase.

Health & Nutrition growth normalizes after first-half timing benefit

Health & Nutrition reported 9.8% like-for-like revenue growth in the first nine months, with volumes up 11.5% and price down 1.7%. Total segment revenue increased 12.8%, including a 3% contribution from the Sweetmix and Scicore acquisitions.

McGuire said the business continued to benefit from demand in active nutrition, functional beverages, and vitamin and mineral supplements. First-half results included incremental customer-led innovation activity, while third-quarter growth returned to a more normalized level within the company’s medium-term growth range of 4% to 6%.

Glanbia maintained its full-year Health & Nutrition revenue outlook of 8% to 10% like-for-like growth. Fourth-quarter volume growth is expected to be below the third-quarter level due to the timing of customer orders. EBITDA margin is still expected to be between 17% and 19%, with second-half costs affected by supply-chain disruption related to the conflict in the Middle East.

The company said integration of Sweetmix in Brazil and Scicore in India remains on track. Capacity expansions in the U.S., Europe and China are also progressing, with new capacity expected in early 2027. McGuire said Glanbia remains active in pursuing acquisitions to expand Health & Nutrition, while maintaining financial discipline amid what he described as “frothy” valuations for some assets.

Dairy Nutrition outlook improves

Dairy Nutrition generated 2.1% like-for-like revenue growth in the first nine months, with volumes up 1.4% and pricing up 0.7%. Growth was driven by protein solutions, particularly products serving high-protein ready-to-eat and healthy-snacking categories, while cheese-market pricing partly offset double-digit pricing gains in whey protein solutions.

Glanbia raised its full-year Dairy Nutrition EBITDA expectation to $175 million to $180 million. It also expects its share of profit after tax from its joint venture to marginally exceed $20 million for the year.

At the end of the third quarter, net debt stood at $704 million. The company expects capital expenditure of $100 million to $110 million in 2026, largely for Health & Nutrition capacity expansion, integration and digital initiatives. It expects operating cash-flow conversion of at least 85% and net debt to EBITDA of about one times at year-end.

During 2026, Glanbia repurchased and canceled about 4.9 million shares at an average price of €20.49 under its €100 million buyback program. It also returned about €102 million through dividends, consistent with its stated progressive dividend payout ratio of 30% to 40% of adjusted earnings per share.

About Glanbia (LON:GLB)

We are a better nutrition company, home to consumer brands and ingredients that help people around the world feel strong, nourished, and to perform well at any age. Everything we do has real nutritional benefit. Everything we do is in pursuit of better, for each other and the planet.

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