Glanbia confirms outlook despite Irish economic woes

By Guy Montague-Jones

- Last updated on GMT

Related tags: Milk, Glanbia

Glanbia has reiterated its strong outlook for full year profits despite the poor performance of its US cheese and Irish consumer businesses.

The announcement came in a trading update published alongside the news that the Irish dairy group plans to buy US sports nutrition firm Bio-Engineered Supplements and Nutrition (BSN) for $144m.

Glanbia said the positive numbers from Global Nutritionals and the return to profitability in Irish Dairy Ingredients recorded in the first half of the year continued into the second half. Ahead of the publication of full year results on March 2, the company has therefore reiterated its prediction that 2010 adjusted earnings per share growth will be around 20 per cent.

Finished product struggles

Glanbia made the positive forecast in spite of problems the company is experiencing with its finished dairy product business in Ireland and its business-to-business cheese business in the US.

ithin the Dairy Ireland business unit, Glanbia said overall results for Consumer Products, which include branded milk, cheese and other dairy products, are expected to be lower than 2009.

And in the US, the Irish company expects 2010 operating profits at its cheese business to fall below previous year levels. It said results have been affected by the refurbishment of its Twin Falls cheese plant, higher milk price premiums during the course of the year and a sharp weakening in US cheese prices in the fourth quarter.

Falling prices at the end of the year are also likely to affect Southwest Cheese – a joint venture between Glanbia and the Greater Southwest Agency based in New Mexico. Nevertheless, Glanbia said the business, which underwent a 40 per cent capacity expansion in 2010, is poised to deliver a “solid performance”.

Despite the weaknesses in US cheese and in Consumer Products in Ireland, Glanbia is expecting growth from the wider divisions that the business units they belong to.

Sustained recovery in Irish Dairy Ingredients is predicted to ensure that despite the problems with the Consumer Products business, Dairy Ireland will publish full year operating profits and margins well ahead of 2009 levels.

And volume growth that outpaces the market in Global Nutritionals is expected to ensure that Global Nutritionals and US Cheese delivers higher operating profits in 2010.

Related news

Show more

Related products

show more

INNOBIO® Vegan EAAs Enhanced with Vegan CLA

INNOBIO® Vegan EAAs Enhanced with Vegan CLA

INNOBIO Limited | 19-Aug-2019 | Technical / White Paper

It is known to all that EAAs can improve muscle growth and exercise performance, as well as increase lean body mass and prevent muscle loss. INNOBIO® EAAs...

Fermented Soy for Natural Digestive Support

Fermented Soy for Natural Digestive Support

Lallemand Bio-Ingredients | 22-Apr-2019 | Technical / White Paper

Lallemand is running a new clinical trial for Gastro-AD® in spring 2019. Gastro-AD® is a clinically studied food supplement based on non-GMO soy fermented...

Discover the Significance of sIgA for Immunity

Discover the Significance of sIgA for Immunity

LEHVOSS Nutrition– Gee Lawson | 28-Mar-2019 | Technical / White Paper

Embria Health Science’s dietary supplement ingredient EpiCor® fermentate has been shown in multiple published human clinical trials to help strengthen...

Related suppliers

Follow us

Featured Events

View more

Products

View more

Webinars