Glanbia Reports "Very Satisfactory" 2007 Performance
Consumer Foods had a challenging year and will be behind 2006 performance. The liquid milk and chilled food sectors remain competitive and in 2007 were impacted by the time lag in recovering the price increases for raw material inputs.
08/01/08 Glanbia, the international dairy foods and nutritional ingredients Group, has reported a strong performance in 2007 with adjusted earnings per share expected to be at the upper end of market expectations. This very satisfactory performance is driven by strong results from Food Ingredients and global Nutritionals which included the full year impact of the Seltzer acquisition.
Favourable market conditions including increased global demand for dairy products and strong organic growth in all segments of this division underpin the 2007 results and an expected good performance in 2008.
Consumer Foods had a challenging year and will be behind 2006 performance. The liquid milk and chilled food sectors remain competitive and in 2007 were impacted by the time lag in recovering the significant price increases for raw material inputs. Implemented and planned initiatives to recover the cost increases provide a solid base for improvement in 2008. The pigmeat business performed broadly in line with expectations, despite a serious fire at one of its operations in August and tough markets worldwide.
Agribusiness had a satisfactory performance in a competitive trading environment and continues to reshape the business to meet the needs of a changing market. Property had a quieter year due to the timing of disposals.
Whilst the performance of international joint ventures will be below 2006, primarily as a consequence of the time lag in recovering major price increases for raw materials, considerable progress was made in closing the price gap during the second half of the year and a significant improvement in performance from these businesses, is anticipated during 2008.
John Moloney, Group Managing Director, commented 'We are pleased with the strong performance in 2007, delivered as a consequence of the spread of businesses across the Group and a positive market environment. Whilst global dairy markets continue to evolve as we enter 2008, the outlook for Glanbia this year is positive. As a Group we are continuing to invest and focus on growth and innovation, combined with competitiveness and productivity, and Glanbia is well placed for sustained double digit growth going forward.'
Glanbia’s 2007 results are expected to be announced on Wednesday, 5 March 2008.
