Ireland’s Glanbia is selling its online Body & Fit sports-nutrition business to an unnamed buyer.
Vague details were provided in Dublin-headquartered Glanbia’s first-half results today (13 August) showing overall sales and volumes within its Performance Nutrition (PN) division declined.
Netherlands-based Body & Fit, which also sits within the PN business unit, along with the SlimFast weight-loss brand and the Optimum Nutrition protein powders line, was acquired by Glanbia in 2017 for an undisclosed sum.
“In line with previous announcements regarding non-core brands, Glanbia has signed an agreement for the sale of Body & Fit, the Benelux direct-to-consumer e-commerce business, subject to certain customary deliverables,” Glanbia said.
The deal is expected to be finalised in the final quarter of this year.
Body & Fit’s portfolio includes protein powders, bars and sports nutrition supplements. Glanbia’s Optimum Nutrition brand covering similar categories is also sold on the platform, according to Body & Fit’s website.
In the half to 5 July, revenue for the PN unit dropped 3.8% on a constant-currency basis to $850m and was down 3.6% in reported terms. Volumes fell 3.5% with a 0.3% decrease in price.
Excluding SlimFast and Body & Fit, revenue fell 1.5%.
“The volume decline was largely driven by anticipated challenges in the US club and speciality channels and declines in non-core brands, partly offset by good growth in online and FDM channels,” Glanbia said.
The company said Optimum Nutrition accounts for 67% of the PN division’s revenue but the metric dropped 0.5% in the half. Revenue for the brand turned to positive growth in the second quarter, Glanbia added.
Outside of the PN business, Glanbia operates two other units: Health and Nutrition, and Dairy Nutrition, mainly encapsulating food and beverages ingredients, along with cheese for the latter.
Company-wide revenue climbed 6% in the half to $1.9bn with volume up 0.9%. EBITDA, pre-exceptional, fell 7.5% to $241.3m. Adjusted EPS dropped 7.5% in constant currency to $63.03.
CEO Hugh McGuire said: “Today’s results reflect a first half of significant execution and progress as we generated 6% revenue growth in the period, underpinned by strong growth in H&N and DN and a sequential improvement in PN through the period as the group navigated significant macroeconomic volatility.
“First-half results were driven by volume growth, earnings and margin progression in H&N and DN, reflecting strong customer demand. This was offset by anticipated reduced performance in PN primarily as a result of elevated whey costs during the period.”
McGuire added: “The category trends remain positive, and we expect to see continued improvement in volumes across PN in the second half of the year with continued momentum in H&N and DN.”
Meanwhile, Glanbia will have a new chairman.
Independent non-executive director Paul Duffy becomes chair designate from today and will succeed Donard Gaynor as chairman on 1 January. Gaynor is retiring.
