Glanbia Revenues Rise 26%, Boosted by Nutrition

Revenues rose dramatically by more than 26% to €2.67billion ($3.55 billion). The final dividend for shareholders topped 4.94c per share. Operating profit increased by 22% but margins fell 20 basis points to 6.1% as the company dealt with the effects of higher commodity prices and input costs. Most of the growth came from the US cheese and global nutritionals business rise, where revenue climbed 35% to €1.38bn ($1.83 billion), overtaking turnover at the Dairy Ireland business.

March 1 2012 --- Glanbia, the international dairy firm based in Ireland, has seen its net profits rise to €112 million ($149 million), an increase of 3% on 2010.

Revenues rose dramatically by more than 26% to €2.67billion ($3.55 billion). The final dividend for shareholders topped 4.94c per share.

Operating profit increased by 22% but margins fell 20 basis points to 6.1% as the company dealt with the effects of higher commodity prices and input costs.

Most of the growth came from the US cheese and global nutritionals business rise, where revenue climbed 35% to €1.38bn ($1.83 billion), overtaking turnover at the Dairy Ireland business.

Margins in the global nutritionals division slid by nearly 1% to 9.3% but were more than double margins in the Dairy Ireland sector.

There was a strong performance by Global Nutritionals, market growth estimates for 2011 for key global nutritional segments included 15% growth in the nutritional bar market, 7% growth in sports nutrition and 18% growth in nutritional beverages.

BSN, acquired in January 2011 for $144 million, performed in line with expectations and good performance by Dairy Ireland underpinned by positive global dairy markets.

John Moloney, Group Managing Director, said "Glanbia achieved excellent results in 2011 delivering 26.7% growth in adjusted earnings per share, on a constant currency basis. The acquisition and successful integration of BSN into Performance Nutrition complemented strong organic revenue growth in our three nutritional businesses.

“These businesses continue to outpace market growth rates, driven by strong market positions and science based, customer focused innovation. Positive global dairy markets underpinned a solid performance by Dairy Ireland despite the challenges of the Consumer Products business.”

Moloney outlined the outlook for the company for 2012: “We expect the operating environment in 2012 to be more challenging than in recent years. Current global economic uncertainty has the potential to impact global dairy markets and fragile consumer confidence. The Group's focus on driving growth in nutritionals, combined with deep dairy market expertise and strong execution capability, position us well for the future. Our guidance for 2012 is for 5-7% growth in adjusted earnings per share, on a constant currency basis."