Glanbia’s top-selling Optimum Nutrition brand has become the company’s first billion dollar brand. The suite of protein powders sold under the Optimum Nutrition label generated just over $950 million in revenue last year but passed the $1 billion mark in terms of retail value, the company confirmed on Wednesday as it published record results for last year.
Glanbia acquired the Illinois-based maker of nutritional supplements for gym goers in 2008 for €213 million, seeing an opportunity to grow the business. It had previously supplied it with whey for use in various products such as Gold Standard 100% Whey.
The acquisition has propelled Glanbia to the forefront of the protein powders business globally. It is now the biggest seller of these products in the US and several other markets.
The Kilkenny-based food group on Wednesday reported record revenues and profit for 2022 on the back of strong sales of its performance nutrition products, which on top of Optimum Nutrition also includes brands such as Isopure and SlimFast. It also announced a deal to sell off its mozzarella cheese business to partner Leprino Foods for €160 million.
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Glanbia said it generated revenues of €5.6 billion for the 12 months to the end of December, up 21.2 per cent on a constant currency basis from the figure of €4.2 billion in 2021.
Profit after tax for the year rose to €256.8 million from €167.4 million while its adjusted earnings per share grew by 17.6 per cent to 104.02 cent. The company also announced that its results would – from next year – be denominated in dollars, reflecting the fact that 80 per cent of its sales are generated in North America.
Managing director Siobhán Talbot said the company’s “highest ever annual earnings performance” was “achieved despite unprecedented inflationary headwinds and was led by the strong performance of the Optimum Nutrition brand, growing US consumption by 30.8 per cent in 2022, and continued good delivery by our GN Nutritional Solutions business”.
“This 2022 result underpinned the delivery of the group targets set out in 2018 for the period 2018 to 2022. Looking forward, our strategic focus on ‘better nutrition’ growth platforms is clear and we are confident that it will drive sustained growth in the coming years, delivering the targets set out at our recent capital markets event,” she said.
Glanbia said branded sales of its performance nutrition products grew by 14.6 per cent to €1.6 billion in 2022, comprising a 2.1 per cent decline in volumes and 16.7 per cent increase in prices. Sales of Optimum Nutrition brand were particularly strong in the US, which helped offset weaker sales of its SlimFast brand.
The Glanbia board recommended a final dividend of 19.28 cent per share which brings the total dividend for the year to 32.21 cent per share, a 10 per cent increase on the prior year.
The company also announced that it had signed a non-binding agreement for Leprino Foods to acquire full ownership of Glanbia Cheese, a leading mozzarella maker in Europe, comprising Glanbia Cheese UK and Glanbia Cheese EU.
It is expected that Glanbia plc will receive initial cash consideration in excess of €160 million (inclusive of repayment of shareholder loans) for the sale of its stake, “with the possibility of additional contingent consideration of up to €25 million over the next three years, dependent on business performance”.
Glanbia Cheese has three manufacturing facilities – Llangefni in Wales, Magheralin in Northern Ireland and Portlaoise, Ireland.
After the deal, the existing team will continue to manage the business, led by chief executive Paul Vernon and his senior management team, with no disruption to day-to-day operations.
Commenting, Mike Durkin, president and chief executive of Leprino Foods said: “Having successfully partnered with Glanbia since 2000, we are proud of the high-quality business that we have helped build.”
