Glanbia says it is revising its 2010 earnings per share outlook due to an expected strong first-half performance and improved prospects for the full year.
In a trading update, the company said the key factors in the better outlook were a continued recovery in Irish dairy ingredients, as well as a good performance by its US cheese and global nutritionals business.
Glanbia is targeting mid-teens percentage earnings growth for the full year.
The company said it is performing well so far this year as its operating environment has improved considerably compared to the same time last year.
Glanbia said that global dairy markets have substantially recovered from the severe downturn seen the previous year and the performance of the Irish dairy ingredients will be 'significantly improved' compared to the major loss incurred in the first half of 2009.
'While the trading environment remains difficult in Ireland, consumer products and agribusiness are performing satisfactorily,' the company added.
Its US cheese and global nutritionals business is also expected to deliver a good performance in the first half of the year.
Yesterday, farmer shareholders rejected a move to convert the Irish business of Glanbia plc into a farmer-owned co-operative. 73% of the 4,060 farmer shareholders voted in favour of the move, just short of the required 75%.
The chairman of Glanbia Co-Op Liam Herlihy said he was disappointed at the outcome and the proposal would not now proceed.
Glanbia managing director John Moloney described the vote as a 'big disappointment' but said the group remained confident of the underlying strength of its businesses.
Shares in Glanbia closed down 5.3% at €2.92 in Dublin.
