Despite the challenging economic conditions internationally, not to mention those at home, Glanbia plc is enjoying a healthy 2010.
In an Interim Management Statement covering the period July 4 to November 11, the southeast-based agri-food and nutritionals company said it has built on “an excellent first half” to deliver “a strong performance” year to date.
“Although the Irish consumer food market continues to be challenging, the Group’s overall operating environment remains positive due to improved global dairy markets and good demand across key nutritional product sectors,” the statement said, adding that for the full 12 months it expects to achieve revenue and operating profit growth in line with expectations.
As indicated at the half-year stage, its Dairy Ireland division is having a mixed year. “Against the backdrop of improving dairy market conditions and strategic cost reductions, Irish Dairy Ingredients returned to profitability in the first half and this business is expected to be strongly ahead for the full year after a very difficult 2009,” the company said.
Consumer Products “continues to have a tough 2010 as economic conditions and the trading environment in Ireland remain very difficult. An enhanced product offering, promotional programme and tight management of costs, will only partially redress the impact of the prevailing market conditions and results are expected to be lower than in 2009,” the group confirmed.
With Agribusiness forecast to be marginally ahead for the full year, overall full year operating profit and margins for Dairy Ireland are expected to be “significantly ahead” of 2009.
Glanbia’s US Cheese and Global Nutritionals division had a good first half and these businesses, particularly the latter, are performing in line with expectations in the second half. US Cheese is having a reasonable year. Overall operating profit here is expected to be ahead of 2009.
The group’s Joint Ventures and Associates continue to have a good year, with solid performances by Southwest Cheese in the USA and Glanbia Cheese in the UK.
At current exchange rates, the Group is forecasting a year-end net debt of approximately €420 million. Outlook-wise, “Disciplined financial, operational and strategic execution across the business is delivering a strong recovery in performance this year,” the statement affirmed. “The Board is confident that Glanbia will achieve strong revenue and operating profit growth for the full year and the Group reiterates adjusted earnings per share guidance of approximately 20% growth for 2010.”
