Glanbia Delivers Outstanding First Half With Strong Pricing and Resilient Volume Development

No-moat dairy ingredients and performance nutrition manufacturer Glanbia reported a strong set of first half-year results on the back of extraordinary pricing actions that delivered a contribution of around 22% to revenue growth, year on year. Volumes were surprisingly resilient—flat for the performance nutrition segment and up by 5% for the nutritional division over the same period. We updated our outlook to reflect the near-term upside in pricing, but we anticipate some of the short-term benefits will start to reverse in the latter part of next year as dairy prices normalize, which leaves our fair value estimate unchanged at EUR 12.