Glanbia to achieve growth target

IMPROVING dairy markets and continuing progress in its nutritional range will ensure that Glanbia will achieve its 20% adjusted earnings per share growth guidance for the full year, the group said yesterday.

However, it warned in a market update that the domestic market remains challenging but the overall operating environment for the Kilkenny-based international nutritionals and cheese group will underpin its overall performance in 2010.

Dairy Ireland is having a mixed year. Irish Dairy Ingredients, which recorded heavy 2009 losses, returned to profit in the first half and the business is expected to be well ahead for the full year.

The group said operating profit and margins for the year at Dairy Ireland will be significantly ahead of 2009.

In the US both the group’s significant cheese and global nutritionals operations recorded a good first half and have been performing in line with expectations in the second half.

Glanbia said its US operations are expected to be ahead of the 2009 outcome, underpinned in particular by the performance of evolving Global Nutritionals business. By the year end the group indicated it expected its net debt to stand at €420m.

Here at home the consumer products division continues to have a tough 2010, reflecting the state of the nation.

It said overall economic conditions and the trading environment in Ireland remain very difficult.

Agribusiness is forecast to be marginally ahead for the 12 month period. The group has a market base in that sector of about 20,000 farmer suppliers and customers.

Glanbia said it is confident that it will achieve strong revenue and operating profit growth for the full year and it said it was keeping its adjusted earnings per share guidance of about 20% growth for 2010.

Glanbia shares were up 2.8% to €3.34 in Dublin by lunchtime yesterday.