Glanbia projects earnings increase

SALES growth in Glanbia’s cheese and global nutritional businesses has led the food group to project its earnings per share to increase by 20% for 2011.

In an interim statement for 2011 published yesterday, Kilkenny-based Glanbia reported revenue growth of 28% for the 10 months to October 31, compared to the same period last year.

Already Europe’s leading supplier of mozzarella cheese for pizzas, the group has also enjoyed a 35% surge in its US cheese and global nutritionals business.

This US growth was also partly driven by the impressive performance of Bio-Engineered Supplements and Nutrition, the Florida-based company which Glanbia acquired for €108m in January.

Glanbia has been carrying a “buy” rating from all the major stockbrokers since group managing director John Moloney announced the company’s plans to spend €200m next year on US-based acquisitions.

John Moloney said: “Most aspects of the business are performing well in thesecond half. Strong organic top line revenue growth continues, building on excellent first half results.”

Mr Moloney cautioned the dairy industry has seen some contraction in margins from a year ago due to increased prices for whey.

The group said its 28% revenue growth was due to 10% underlying volume growth, driven primarily by Global Nutritionals and Dairy Ingredients Ireland.

In Ireland, the group’s agri-business wing is performing well, but Glanbia is predicting a decline for the year in consumer products. Nonetheless, the 10-month revenue growth for Dairy Ireland was 23%.