Glanbia: Maintaining Our Fair Value After In-Line Sales and Acquisition of Flavor Producers

No-moat Glanbia’s first-quarter 2024 sales update showed 1.5% volume growth and a negative pricing contribution of 6.9%, reflecting the inflationary environment in dairy markets. Both the performance nutrition and nutritional solutions segments delivered low-single-digit positive volume development in the quarter. With the decline in dairy market pricing in line with expectations, Glanbia confirmed its full-year guidance for growth in adjusted EPS between 5% and 8%. We don’t expect to make material changes to our forecast in light of this update and confirm our fair value estimate of EUR 15.90. At current levels, shares look slightly overvalued.