Glanbia half-year results show slight rise

The board of Glanbia has released its interim results for the first half of 2003, showing an operating profit marginally ahead of the first half of 2002.

The group benefited from profit growth in consumer foods and agribusiness operations.

The consumer foods area (engaged in production and marketing of meat and dairy products through retail channels in the UK and Ireland), further improved its performance in the first half of 2003 aided by the exit from under-performing UK businesses in mid-2002.

Some of the highlights included an operating margin increase of 4.4%, before exceptional items, and an increase in profits of 5.4% at €37.56m before tax and exceptional items.

The profits reflect the benefits of the groups lower borrowings (down 18.5%) and interest costs.

There was also an increase in the interim dividend of 5%, rising to 2.06c per share.

Redundancy costs totalled €9.50m in the period, arising from the fire at the Roosky pigmeat plant in 2002. This was offset by an exceptional gain of €11.60m from the insurance settlement.

The food ingredients performance was hit by weak markets and currency, while a Joint Venture cheese and whey facility has been announced for New Mexico.

Strategic development continues in the group, with initiatives in the USA, Europe and Africa.