Food group Glanbia has reported that its operating profit grew by 18% to €161m in 2011, as revenue jumped 23% to €2.7 billion.
When currency movements were stripped out, operating profits rose 22% to €166.8m. Pre-tax profits were €138.7m, up from €134.7m in 2010.
2011 was a positive year for global dairy markets following a good year in 2010, but the group predicts some weakness in Ireland in 2012.
Glanbia says it was another difficult year for the food retail market in Ireland; with consumer sentiment falling sharply towards the end of the year. Its statement says the Irish economic and fiscal backdrop offers little respite at present to consumers, and as a result these market conditions are expected to persist in 2012.
Its managing director John Moloney warns that the group expects the operating environment in 2012 to be tougher than in recent years. Current global economic uncertainty has the potential to affect dairy markets and fragile consumer confidence, he says.
He says the group is looking for growth of 5% to 7% in adjusted earnings per shares this year. A 10% higher final dividend of 4.94 cent is to be paid.
A breakdown of the results showed that revenue at its US cheese and global nutritionals businesses grew by 35% to almost €1.4 billion, when currency movements were stripped out. Profits rose more than 21% to €113.8m. Glanbia described the cheese business performance as "solid".
It said its nutritionals business had a strong year, and was expected to perform well again in 2012.
Dairy Ireland revenue rose almost 19% to €1.35 billion, with profits up 23% to €53.6m. Volumes and prices in the ingredients business rose, but margins declined in the consumer products business, despite an increase in revenue.
Revenue from joint ventures, on a constant currency basis, rose by almost 30% to €541m, while profits grew by 20% to €26m.
Glanbia eyes milk quota removal opportunities
Glanbia managing director John Moloney told RTÉ radio the removal of EU milk quotas in 2015 was "a significant opportunity" for Ireland, which had been subject to milk limits since 1984.
Mr Moloney said the opportunity was founded on growth in developing economies, which would boost consumption. He said Glanbia was still working on plans and looking at options for a new milk processing plant to handle this demand.
The Glanbia chief said there was a "good debate" going on, and talk of differences at board level on the plans was "speculation".
Asked about an IFA suggestion that Glanbia and Dairygold should link up, Mr Moloney said the two already had successful asset-sharing arrangements. He said the issue was no longer about competing within Ireland, but worldwide, and Glanbia was interested in talking to people with a contribution to make to that.
Glanbia shares closed 5.2% higher at €5.60 in Dublin this evening.
