Analysts agree with Glanbia’s annual earnings per share growth projections
In an interim management statement issued yesterday, Glanbia estimates that share earnings will grow by 10% on a constant currency basis this year. Total group revenue rose slightly in the nine months to Sept 29.
Goodbody Stockbrokers have upgraded their FY12 forecasts for Glanbia by 2%, noting that the full- year earnings per share will be closer to the 18% than the 16% it had been predicting.
Liam Igoe of Goodbody said: “Glanbia’s sales growth for the nine months to end Sept were broadly as expected, with constant currency revenue growth of 9% in the core US cheese and global nutritionals business, while Dairy Ireland saw sales decline 4%.
“Our [earnings per share forecast] upgrade will be centred on increasing our profit forecast for the Dairy Ireland business, where profit declines now look set to be less than we had anticipated.”
Glanbia explains the 4% fall in Dairy Ireland’s revenue by a mix of lower volumes and prices, especially in the first half. Glanbia expects a “solid” performance for the full- year and profits will be only “marginally” behind 2011.
Glanbia Group managing director John Moloney said: “A key project this year has been reaching agreement on the proposed Irish dairy processing joint venture with Glanbia Co-op, our majority shareholder.
“I believe this is the best route to deliver the next phase of growth in both our Irish and international businesses and to create further value for shareholders, including Glanbia Co-op.”
The Global Nutritionals business grew by 20% in the period.
Glanbia has invested €110m on acquisitions and capital expenditure this year, acquiring Aseptic Solutions in the US for €50m, and the building of the Customised Premix Solutions plant in Germany, and the new whey protein isolate plant in Ballyragget, Co Kilkenny.
Group net debt was at was €585m on Sept 29.
