Glanbia share earnings up 17%

GLANBIA confirmed yesterday it had delivered around 17% growth in adjusted earnings per share in 2008 in line with market expectations.

But it warned 2009 is set to be very challenging given the severe impact of the economic and financial turmoil on both developed and emerging economies.

The group said in a trading statement, that it had a good performance last year. Full results will be announced on March 4.

It reported all its businesses, except Food Ingredients Ireland, performed in line with, or better than, expectations.

Glanbia said its Irish division, incorporating Consumer Foods and Agribusiness and Property, traded well, despite a challenging market environment.

The performance of Consumer Foods improved on 2007 as the business benefited from a planned recovery in margins and significant investment in rationalisation. Agribusiness delivered a better performance in 2008, driven by an improved business mix and cost containment initiatives.

Businesses in the group’s international division, which incorporates food ingredients in Ireland and the USA and global nutritionals, performed strongly with the exception of Food Ingredients Ireland

The performance of Food Ingredients Ireland in the second half was significantly impacted by the decline in world dairy prices and by the imbalance between market pricing and raw material cost.

Overall, the performance of the international division for the full year will be in line with 2007.

Glanbia reported that an excellent performance from Southwest Cheese in the USA underpinned a significant full-year improvement in the overall result from international joint ventures.

Group managing director John Moloney said the delivery of approximately 17% growth in adjusted earnings per share in 2008, in line with market expectations, represents a good performance given the decline in global dairy markets and weakening consumer sentiment.

“In the current financial, dairy market and economic uncertainty we are cautious at this early stage of the year. However, we are focused on achieving the market consensus earnings growth for 2009.”