Group’s profits top €101m

Irish-headquartered global food group, Glanbia increased revenues markedly in the first six months of the year, driven largely by strong growth in its global performance nutrition division which saw revenues increase by almost 22%.

Thu, 21 Aug, 2014 - 01:00

Peter O’Dwyer

Total group revenue climbed 10.7% to € 1.8bn in the opening half of the year while pre-tax profits increased from €95m in the same period last year to €101.5m.

Commenting on the results, Glanbia Group managing director, Siobhán Talbot, said the growth seen in the opening half of the year maintained momentum in the Glanbia organisation and was largely in line with expectations.

“Glanbia had a good first half in 2014 resulting in constant currency increase of 11.5% in adjusted earnings per share. Global Performance Nutrition was the key contributor, delivering strong branded revenue growth through effective execution in core channels and continued international growth,” said Ms Talbot.

Of Glanbia’s other business segments, Ms Talbot said its global ingredients section performed satisfactorily in posting a 10.7% increase in revenues although earnings fell.

The company’s Dairy Ireland unit struggled, however.

Revenues fell by 7.7% to €353.8m for the division while EBITA (earnings before interest, taxes and amorisation) also slumped 13% in the opening six months as a result of lower volumes and prices.

“It wasn’t unexpected to us that this would be the trend between the two halves,” Ms Talbot said.

“The context of it is agribusiness would have had a particularly strong, relatively speaking, first half of last year [due to adverse weather conditions]... so therefore feed sales were good in the first half of last year — we didn’t expect that to repeat in the first half of this year.”

The company’s board recommended an interim dividend of 4.43c per share; a 10% increase on the 4.03c per share paid last year.

Glanbia also yesterday announced a €60m strategic investment in its global ingredients aimed at maximising the value of its whey pool, according to the company.