The growing demand for weight-loss drugs globally is proving a boon for Glanbia.
The Kilkenny-based nutrition group reported a 7 per cent jump in revenue for the first six months of the year which included a 25 per cent spike in demand for its premium protein powder product, Optimum Nutrition.
The better-than-expected results, which prompted the company to upgrade its earnings forecast for the year, were linked to the increased use of GLP-1 drugs such as Wegovy and Mounjaro which have revolutionised the treatment of obesity.
“GLP is definitely a tailwind,” Glanbia’s chief executive Hugh McGuire said.
RM Block
Users of these drugs are advised to increase protein intake to help preserve muscle mass while losing weight and Glanbia is among the bigger suppliers of protein products globally.
[ Glanbia’s big shares rally raises questions as well as expectationsOpens in new window ]
McGuire said protein powder supplements were now “mainstream”, with roughly one in three consumers in the US regularly using them.
He noted that US retail giant Walmart recently displayed Glanbia’s brands “right inside the door” to increase footfall across its branch network.
“As a protein powerhouse, we are benefiting from these global trends in health and wellness,” he said.
McGuire said protein sales accounted for half of Glanbia’s $2.1 billion (€1.8 billion) revenue for the six months to the end of June, which was up 7 per cent on the previous year.
In its latest results, Glanbia reported strong growth across its three core business divisions (performance nutrition; health and nutrition; and dairy), with earnings before interest, tax, depreciation and amortisation increasing by 14 per cent to $275 million.
The company’s performance nutrition division saw like-for-like revenue growth of 17 per cent for the period.
Optimum Nutrition remained the standout, Davy analysts said, with estimated organic sales growth in the second quarter rising to 31 per cent.
In the health and nutrition sector, revenues rose almost 18 per cent year on year, reaching $368.5 million, while income in the dairy nutrition division rose 3.9 per cent to $793.7 million.
Following the “strong performance”, Glanbia said it now expected to deliver adjusted EPS (earnings per share) growth of 17-20 per cent for 2026, an upgrade on the previous forecast of 7-11 per cent.
Glanbia shares, which have been on a strong upward trend – up 80 per cent on this time last year, rose by a further 5 per cent to €23.54 on the back of the latest numbers.
Last year, the group’s earnings and share price were hurt by a sudden spike in the cost of whey, the key ingredient for its protein products.
“What we’ve seen with whey is a fundamental shift and it is all demand driven,” McGuire said.
“Demand is so strong for protein brands – and you see that in our numbers – that whey prices have elevated to price points we’ve never seen before,” he said.
There will be a margin squeeze on the business “as we navigate the pricing that we need to put through to consumers because of the increased price of whey,” McGuire said.
Despite having to increase the price of its product, the company was still witnessing a massive increase in demand, he said, noting US protein consumer growth grew by 20 per cent this year.
