Food group Glanbia this morning reported an 8.2% drop in annual pre-tax profits, before exceptionals, of 53.6 million euros, down from 58.5 million euros in 1999.
Glanbia said progress in the second half of 2000 had offset a slow first half of the year. Profits were ahead 25% on the same period in 1999, according to the Group's Managing Director Ned O'Sullivan. He added that the improved performance was continuing into 2001.
The company announced a dividend of 4.31 cents, compared to 7.11 cents the previous year. Glanbia operates in Ireland, Britain and the US and is Ireland's largest milk processor.
The former Avonmore Waterford group reported that strong performances were achieved in its food ingredients, agribusiness and Irish consumer food sectors. The company also reported satisfactory progress in its UK cheese and fresh pork businesses.
A statement from the company said that losses in the UK food service and UK consumer meats sectors had impacted on its overall results but added that a recovery in those sectors was underway.
Referring to the recent fears of foot and mouth disease, the company said that all possible measures were being taken by Glanbia to minimise the effect of the outbreak in the UK on the business. The company said it was not possible to quantify the future financial impact of the outbreak - if any - on the Group's results in 2001.
Glanbia's shares - in common with most of the food stocks on the Irish market - had fallen by up to 20% last week when the foot and mouth scare first broke out. The shares were beginning to post a recovery this week, as hopes increased that Ireland would remain free of the disease.
Dealers said the figures were better than expected and the market noted that the year had started well for the company. Glanbia shares closed up one cent to 57 cents in Dublin.
