Glanbia Reports “Strong” First Half, Faces €8 million Exceptional Charge

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 €8 million.

7/1/2011 --- Glanbia has reported a strong first half of 2011, dating from 2 January to 30 June. 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. 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.
 
Positive global dairy markets and higher volumes have underpinned a good performance by Dairy Ingredients Ireland and supported a solid performance by Agribusiness. As outlined in the Interim Management Statement in May, the trading environment for the Group's Consumer Products business continues to be difficult as consumer sentiment remains weak and input cost pressures remain high.
 
Good performances are expected from the Group's key Joint Ventures.
 
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 €8 million.
 
Glanbia expects to deliver a strong overall first half for 2011, and restates the 2011 full year adjusted EPS guidance of 11-13% growth, on a constant currency basis. The Group's half year results will be announced on 24 August 2011.