Food group Glanbia has raised its target for earnings growth for the whole of 2011 after reporting strong increases in revenue and profits in the first half of the year.
It said global dairy markets were strong, as growing consumption in developing markets led to increased demand and higher prices.
Glanbia said total group revenue grew by 33% compared with the same period last year to just over €1.6 billion.
Pre-tax profits were €82m, up from €60m in the same period last year. The figures included an €8.7m charge linked to cost-cutting measures at its Irish consumer products business.
Operating profit before once-off items rose 38.5% to €91.5m, while adjusted earnings per share grew by 55%, when adjusted for currency movements. A 10% higher interim dividend of 3.33 cent will be paid.
Glanbia said an upward trend in world dairy prices appears to have peaked, but it expected any weakening in prices to be only modest, with no big changes in the near-term.
Profits in Glanbia's US cheese and global nutritionals businesses rose by almost 25% to €59.3m, with revenue up almost 30% to €636m. The increases were stronger when currency movements were stripped out.
Revenue in the Dairy Ireland business climbed by 30% to €705.6m, while profits before restructuring costs jumped by 72% to €32.9m. Glanbia said, however, that profits in its consumer foods business fell as conditions in the Irish market remained tough.
Revenue from joint ventures and associate companies grew by almost 30% to €246.8m, with profits 44% ahead at €16m.
Shares in the company closed 2.8% higher at €4.17 in Dublin this evening.
