Glanbia posts 2% rise in profits

01/03/06 Irish food group Glanbia has announced group profits of €61.1m for 2005, up 2% from €60.2m in 2004.

Revenue increased by 4% to Euro1,830.0 million (2004: Euro1,753.6 million). The difficult environment in Ireland impacted overall profitability and margins, the group said. Operating profit pre exceptional was down 7% to Euro80.6 million (2004: Euro86.3 million) and the operating margin pre exceptional declined 50 basis points to 4.4% (2004: 4.9%).

Glanbia said it delivered a satisfactory performance overall in 2005. A difficult year in Ireland impacted the Group's results, as Irish operations continue to be affected by a combination of ongoing EU reform, inflationary pressures and a competitive market environment. International operations performed well. USA Food Ingredients delivered a solid result, together with strong organic growth in the evolving Nutritionals business. Joint ventures in New Mexico and Nigeria, which are central to the strategic development of the Group, are progressing well reaching key milestones in plant commissioning, production and customer performance.

John Moloney, Group Managing Director, said: “Solid business execution in challenging circumstances in Ireland and a good international performance underpin the 2005 results. While there are ongoing challenges in Irish operations and unpredictibility in energy prices, we expect key cost and product development initiatives in these businesses together with ongoing international development to underpin the delivery of 2006 results in line with current guidance. Growing momentum within the business supports the Group's progress towards double digit growth in 2007.”