Glanbia plc Outcome for 2009 is Expected to Be 30 to 31 cents Adjusted EPS

Overall the Group has performed broadly to plan in the period. However, persistently weak consumer sentiment is driving an increasingly competitive retail market for Consumer Products.

18 Nov 2009 --- Glanbia plc (Glanbia), the international cheese and nutritional ingredients Group, issues this Interim Management Statement, in accordance with reporting requirements under the EU Transparency Directive, for the period 5 July to 17 November 2009. This statement is in accordance with the new segmental analysis announced at the Half Year Results.

2009

Overall the Group has performed broadly to plan in the period. However, persistently weak consumer sentiment is driving an increasingly competitive retail market for Consumer Products. As a consequence, 2009 adjusted earnings per share are forecast to be between 30 to 31 cents, the lower end of current market expectations.

US Cheese & Global Nutritionals

For 2009, as guided, revenues for US Cheese & Global Nutritionals are forecast to be below 2008. A robust performance from US Cheese in volatile markets and a good result from Nutritionals, are expected to deliver a modest improvement in operating profit and operating margin; with operating margin for this segment expected to exceed 10% for the full year.

Dairy Ireland

2009 results for this segment, as previously announced, will be considerably lower overall than 2008. Revenue, operating profit and operating margin have been impacted by a major first time loss in Dairy Ingredients. The deterioration in the performance of this business unit is the principal reason for the forecast year-on-year decline in adjusted earnings per share for Glanbia. The Irish food retail market is still very challenging but against this backdrop Consumer Products is expected to deliver a reasonable performance. Agribusiness will be weaker than 2008 reflecting the difficulties in farming this year.

The Group is continuing to focus on delivering sustainable cost reductions and a review of the competitiveness of Dairy Ireland is currently underway.

Joint Ventures & Associates

The performance of Joint Ventures & Associates is in line with expectations and the Group's share of results is forecast to be in line with 2008, with a small improvement in margins forecast.

Outlook

In recent months there has been some welcome uplift in global dairy markets but it is early days. Consumer sentiment remains weak and there is considerable uncertainty in currency and financial markets. As a result the Board remains cautious on the rate of growth in 2010 at this point in time, particularly in light of a very difficult 2009.

Financial position

2009 year-end net debt is not expected to exceed €470 million relative to a year end 2008 position of €452.1 million. The Group continues to maintain a prudent and conservative approach to cash management and capital and operating expenditure. 

Market Update

The Group will next update the market in its pre close Statement in January 2010.