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Wednesday, December 13, 2017
 Glanbia Attributes Much of Growth to its U.S. Cheese and Global Nutritional Division  

Glanbia  is on track to meet its 2013 expectations after a solid performace in the first four months of the year with group revenue up 9 percent compared with the same period in 2012, and volume accounting for 5 percent.

The Irish dairy giant has attributed the result to growth in its US Cheese and Global Nutritional business.

The US Cheese and Global Nutritionals divison saw revenue rise 14 percent year on year, with volumes up 8 percent and price increases contributing the remainder of the growth. Cheese prices rose, following trends in the global dairy market, and demand was robust, but this strength was offset by a rise in the price of milk.

"Trading is in line with expectations and we expect this trend to continue with growth driven by our US Cheese and Global Nutritionals segment and, in particular, Performance Nutrition," said group managing director John Moloney. "However, in parts of our portfolio there are some challenges, as indicated in our full year 2012 results, with market conditions expected to lead to lower year-on-year performances in Ingredient Technologies and Consumer Products."

The group said first half earnings growth would be stronger than the second half, and reiterated its guidance of 8 percent to 10 percent year-on-year growth in adjusted earnings per share.

The company has also warned market difficulties will hit some of its divisions.

In the four months to April 27th, revenue at the Dairy Ireland division grew by 2 percent, with volume also up by 2 percent. However, the impact of price increases in the market was offset by the divestment of the Yoplait ireland franchise in the first half of 2012.

A challenging retail environment in Ireland led to a difficult start to the year for Glanbia's consumer products division, and it has struggled to recover the increase in milk input costs. This is partly being dealt with by a round of price rises.

"While the business continues to focus on cost reduction programs to ensure a sustainable basis for the business in the longer term, the outlook for 2013 is for a significantly lower first half and second half performance," Glanbia said.

The agribusiness division, meanwhile, has been affected by poor weather conditions at farm level, with sales of fertilizer falling, but feed sales rising year on year. Glanbia said the performance was solid, however. It expects the division to grow in the first half relative to 2012 and to be "somewhat ahead" for the full year.

Source: The Irish Times


Posted on Thursday, May 23, 2013 (Archive on Thursday, May 30, 2013)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org
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