- Nutrition group Glanbia maintained its dividend despite a sharp fall in first-half profit as margins were hurt by a pandemic-led hit to volumes.

The company also announced that it had agreed to acquire Foodarom for CAD 60m, a specialist flavours solutions business based in Canada.

The transaction, exepcted to be completed in H2 2020, was scalable and wouldenable the further development of flavour solutions to NS customers, the company said.

For the six month period ended 4 July 2020, pre-tax profit fell to €58.4m from €91.7m on-year, while revenue increased 4.5% to €1.8bn.

The earnings before taxes, depreciation and amortization (EBITA) margin at 3.7% was 390 basis points lower than prior period reported, due to 'lower volumes and resulting negative operating leverage arising from the negative impact of Covid-19 restrictions, which resulted in the disruption of key sales channels during the height of the pandemic,' the company said.

The interim dividend was unchanged at 10.68 cent per share on-year.

Looking ahead, the company said that while the 'short term outlook remains uncertain, the board is confident that Glanbia has the portfolio, the consumer insight and the operational expertise to succeed in this new environment.'

At 9:28am: [LON:GLB] Glanbia PLC share price was -0.64p at 9.01p

Story provided by