Glanbia Raises Profit Forecast Amid GLP-1 Protein Demand

Glanbia, Plc raised its full-year profit forecast, now projecting adjusted earnings per share growth between 17% and 20% at constant currencies. This is a substantial increase from the 7% to 11% growth range the company guided in April.

The upgrade follows a surge in demand for protein products, specifically from individuals using GLP-1 weight-loss medications who are advised to increase their protein intake. Sales for Glanbia's primary brand, Optimum Nutrition, grew 25% in the first half of the year, despite two price increases implemented since November.

However, the high demand has inflated the cost of whey, a primary ingredient. Glanbia expects whey costs to increase by double-digit percentages through 2027. To offset these expenses, Optimum Nutrition will implement another price hike this quarter, which the company anticipates will slightly slow demand growth during the second half of the year.