The chairman of listed food and agribusiness group Glanbia said today that trading so far this year has been strong with double digit growth expected, compared to a difficult first six months of 2006.
Michael Walsh, reporting to the Annual General Meeting in Kilkenny today, said Glanbia expects full year results in line with market expectations.
He said the group's Irish operations are performing well, with its consumer foods section in line with expectations, although the retail sector remains highly competitive.
He said the closure of the cannery operation and better markets underpin an improving performance from the pigmeat business, with agribusiness having a 'reasonable' first half.
Shareholders heard that Glanbia's international operations are having a strong first half, with Seltzer, the US nutritionals company acquired in October 2006, expected to make a good contribution in the first half.
Mr Walsh said the recent uplift in demand and pricing of milk is providing a welcome benefit to suppliers, though there is a possibility that the current strength in dairy markets could be under threat in the future.
'However, Irish milk processing margins remain tight and international dairy markets, while strong, will have increased potential for future volatility', he warned.
He also warned that there are some challenges arising from strong international dairy commodity markets in respect of International Joint Ventures
He added that Glanbia has not yet been able to fully recover or counteract the dramatic price increases in milk-related raw materials.
John Moloney, managing director, said: 'Despite the need to resolve the short-term raw material cost issues in international joint ventures, we are confident of the long-term sustainable growth of these strategic investments'.
In March Glanbia reported operating profits of €85.6m last year, a 6% increase on 2005, when they fell just short of €81 million. Revenue was up 1% in 2006 to €1.85 billion.
Glanbia shares were up four cent at €3.84 this lunchtime in Dublin.
