Over 16,000 farmers set for Glanbia share windfall
The group recorded overall revenues of €2.9bn on a constant currency basis, despite the fact that earnings from joint ventures and associates declined marginally.
In what will be good news to farmers who held onto the shares they received following the establishment of Glanbia Ingredient International (GII), the board has decided to increase the dividend paid to shareholders by 10% for the third year in a row, with a final dividend of 5.43c per share being recommended.
The higher dividend will be welcome news to the 16,000 farmers who will receive shares today.
“As and from today, 14 Mar, the society members become the beneficial owners of 7% of the issued share capital of Glanbia plc. This means that more than 16,000 members will be the legal owners of these shares, and will receive their share certificates by the end of the month. Shares will be transferred based on the closing share price on 13 Mar, 2013,” a spokesperson said.
Group managing director, John Moloney, is confident the company can continue to deliver strong growth now that it has been reorganised.
“The group delivered strong organic revenue growth and a 22.1% increase in adjusted earnings per share; the third consecutive year of double digit progression. We also achieved a landmark agreement with our majority shareholder, Glanbia Co-operative Society, which restructured our Irish dairy processing business from a wholly owned operation to an associate.
“We are in a stronger position than ever to drive the business forward and capitalise on our competitive advantage in both business-to-business and business-to-consumer nutritional products and solutions,” he said.
Glanbia group has retained a 40% stake in the Irish dairy business following the creation of GII. Glanbia Co-op will have the opportunity to buy this stake in 2015.
The Irish dairy operation represents only a fraction of the group’s overal earnings. The US Cheese & Global Nutritionals business provided more than 70% of the company’s earnings before interest, tax and amortisation.
In 2012, US Cheese & Global Nutritionals revenue rose 11.0% to €1,461.4m.
The cheese market continues to perform well, but it is in the nutritionals area that Glanbia is expecting to see strong growth. Last year the group acquired California-based Aseptic Solutions for €45m.
The acquisition puts Glanbia in position to provide a complete supply chain from ingredients supplier through to product manufacturer in the nutritionals sector.
Glanbia is also planning to complete the construction on a new €22m cereal ingredient plant in South Dakota in the first half of the year.
The expansion is part of the group’s plan to be the world’s leading nutritional and cheese producers.
