Glanbia reports ballooning 2010 operating profit

02-Mar-2011 - Last updated on 02-Mar-2011 at 11:59 GMT

Irish dairy and nutritionals company Glanbia has reported a 22.8 per cent increase in annual operating profit, returning the company to pre-recession earnings figures.

A stronger than expected dairy market helped Glanbia to deliver results above market expectations, and well above what it envisaged at the beginning of last year.

At €2,166.7m, full year revenue was 18.4 per cent above 2009-levels but still slightly short of the 2008 turnover figure.

Meanwhile operating profit climbed above 2008 levels to €136.5m.

2011 forecast

On the back of what Glanbia CEO John Moloney called “an excellent year” the company is upbeat about 2011.

Moloney said: “Our current expectation is that the trading environment for 2011 will be broadly positive. Global dairy markets are expected to remain firm, underpinned by robust demand, particularly from Asia, and demand-led growth in key nutritionals sectors.”

For 2011 Glanbia is forecasting 11 to 13 per cent adjusted earnings per share on a constant currency basis.

Business highlights

Going through the business highlights of the last year, Glanbia said its nutrition businesses performed particularly well. Driven by the strength of Asia and the development of new healthy food products, demand for whey was very strong.

With the acquisition of Bio-Engineered Supplements and Nutrition (BSN) at the beginning of this year for €108m, Glanbia is keen to exploit growth opportunities in the nutrition sector.

The Irish Dairy Ingredients business returned to profitability last year helped by the recovery in global dairy markets.

The only part of the group that really struggled in 2010 was the Consumer Products business which was affected by the weak Irish economy. Glanbia said food shoppers in Ireland are going for value and promotional items and away from convenience shopping.

Regarding the failed attempt in the first half of 2010 to sell the Irish Dairy and Agribusiness segments to majority shareholder Glanbia Co-operative Society Limited, Glanbia said: “The Group believes that this project is unlikely to be re-visited by the Society in the medium term.”