Food group Glanbia has reported better than expected results for last year, helped by a return to profit in its Irish dairy ingredients business.
Trading profits were up 22.8% to €136.5m, as revenue climbed by 18% to €2.17 billion. Pre-tax profits, which included some once-off items, were €134.7m, down from €143m in 2009.
Earnings per share rose 24% to 38.07 cent and a full year dividend of 7.52 cent has been proposed.
Strong demand in Asia lifted world dairy markets during the year. Managing director John Moloney said Glanbia had also benefited from strong sales growth in its three nutritionals businesses and cost-cutting measures in Ireland He said he expected the trading environment in 2011 to be positive, and signalled earnings per share growth of 11% to 13%.
Glanbia also said a plan by the Glanbia Co-op to buy its Irish dairy and agri-businesses was 'unlikely to be revisited by the society in the medium-term'.
A breakdown showed that Dairy Ireland profits jumped by more than 80% to €43.5m on 10.7% higher revenue of €1.14 billion, despite lower sales and profits in its consumer products business, where Glanbia said the market remained tough.
Profits at the US cheese and global nutritionals arm were up 4.2% to €93.9m, as sales rose 29% to €1 billion. Profits at joint ventures and associates were 24% higher at €21.6m, as revenue jumped 40% to €416.6m.
