Glanbia expects strong first-half result

THE international nutritionals and cheese group, Glanbia, is expecting a strong first-half result, according to a trading statement issued yesterday.

The group confirmed it will also meet its 2011 full-year adjusted earnings per share guidance of 11-13% growth on a constant currency basis.

The half-year results will be announced on August 24.

The Kilkenny-based group said organic volume growth was sustained in all segments of its nutritionals market, including BSN, which was acquired in January.

Its cheese division in the US accounts for nearly 20% of the market and should also deliver satisfactorily.

That is despite somewhat lower volumes than in the first half of 2010, due to continued competitive pressures in the milk procurement environment, Glanbia said.

Positive global dairy markets and higher volumes have underpinned a good performance by Dairy Ingredients Ireland and supported a solid performance in the group’s Irish agribusiness division.

The one negative for the group is that the trading environment for the group’s consumer products business “continues to be difficult” as consumer sentiment remains weak and input cost pressures remain high.

Good performances are expected from Glanbia’s international joint ventures in Europe and the US.

Reflecting the depressed state of the Irish economy, the consumer products division continues to rationalise its business and work towards achieving a sustainable cost base appropriate to the tough market, the group said.

That action will result in an exceptional charge in the half-year results of approximately €8 million in the current year.

The group also heralded a change in reporting policy. It has decided to break with the past and not issue any further pre-close trading statements after this latest announcement.