Glanbia notes 'strong' H1

Food group Glanbia in a half-year trading statement issued this morning said it had a "strong" six months to the end of June.

The company said it expects to deliver a strong overall first half for 2011, and restated full-year earnings per share guidance of 11-13% growth.

Positive global dairy markets and higher volumes have underpinned a good performance by Dairy Ingredients Ireland and supported a solid performance by Agribusiness, the statement said.

"Organic volume growth has sustained in all Global Nutritionals' key market segments and good progress was made with the integration of BSN, acquired in January 2011," it added.

"US Cheese is expected to deliver a satisfactory first half performance despite somewhat lower volumes than in the first half of 2010, due to continued competitive pressures in the milk procurement environment."

However, it added, the trading environment Glanbia's Consumer Products business "continues to be difficult" as "consumer sentiment remains weak and input cost pressures remain high".

"Consumer Products continues to rationalise its business and work towards achieving a sustainable cost base that matches prevailing market conditions. This will give rise to an exceptional charge in the half year results of approximately €8m."

Glanbia's half year results will be announced on August 24.