Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
magazineGlanbia is a nutritious pick for your portfolio
Global nutrition group Glanbia (GLB) has invested €181m in two highly complementary acquisitions (6 Feb). These deals highlight the strategic attractions of nutrition assets, as we outlined in our look at Science in Sport (SIS:AIM) – see Big News, 02 Feb 2017.
Kilkenny-headquartered Glanbia has enhanced the growth potential of its performance nutrition business through the takeover of California’s Amazing Grass, a natural plant-based nutrition products provider.
It has also snapped up Body & Fit, an online performance nutrition business selling mainly to Germany and the Benelux countries. Glanbia will flex its muscles in expanding Body & Fit’s sales across Europe. Both sport strong growth track records and combined will be ‘marginally earnings accretive in 2017’.
Given group turnover approaching €3.7bn, investors should probably be more aware of Glanbia. Also a major manufacturer of nutritional and functional ingredients, milk, butter and American-style cheddar cheese, Glanbia operates in the low risk food sector. It also has limited exposure to the UK and a strong US presence.
Irish brokerage Davy has an ‘outperform’ rating, arguing Glanbia is executing early in unlocking its balance sheet in a sensible manner to drive earnings with these deals. Analyst Jack Gorman will likely adjust his forecasts upwards following full year results later this month (22 Feb).
We like Glanbia at €15.81 for its growth potential in nutrition and resilient earnings profile. (JC)
Important information:
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
