Glanbia on track to meet targets this year

Thursday 16 May 2013 18.28
Glanbia says retail environment in Ireland remains ''very challenging''
Glanbia says retail environment in Ireland remains ''very challenging''

Food group Glanbia has said that the overall group is performing to expectations so far this year.

In an interim management statement, the company reiterated its outlook for this year of 8% to 10% growth in adjusted earnings per share.

But it said it expects its first half earnings growth to be stronger than the second half due mainly due to the timing of market price movements.

Glanbia said that its Dairy Ireland revenues for the first four months of the year grew by about 2% with volumes 2% higher while price increases contributed over 4%. But the sale of the Yoplait Ireland franchise last year had a negative impact on revenues.

The company said that the retail environment in Ireland remains ''very challenging'' and its consumer products division had a difficult start to the year.

''While the business continues to focus on cost reduction programmes 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 stated.

Glanbia said that the performance of its agri-business division was ''solid''. It said that the division's outlook is to deliver growth in the first half relative to 2012 and to be somewhat ahead for the full year.

The company said that revenue for its US cheese and global nutritionals division grew by 14% in the first four months of the year. Volumes grew by 8% and price increases contributed almost 4%. Glanbia said it saw a positive impact from the purchase of Aseptic Solutions during the four month period.

See how Glanbia shares performed in Dublin trade

''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,'' commented Glanbia's chief executive 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,'' he added.