Glanbia Revenues Up 13%
This increase is a combination of price and volume growth in Food Ingredients USA and Nutritionals including a full six month contribution from Seltzer Companies Inc., the Nutritionals acquisition completed in October 2006.
30/08/07 Glanbia has delivered strongly in terms of profits, margins and earnings per share growth in the first half of 2007. The Group benefited, in particular, from good underlying growth in Food Ingredients USA and the expansion of the global Nutritionals business, against a background of positive trends in world dairy markets.
Revenue increased 13% (Euro117.5 million) in the first half of 2007 to Euro1.04 billion (H1 2006: Euro922.8 million). This increase is a combination of price and volume growth in Food Ingredients USA and Nutritionals including a full six month contribution from Seltzer Companies Inc., the Nutritionals acquisition completed in October 2006. Operating profit grew 33% (Euro12.1 million) to Euro48.5 million (H1 2006: Euro36.4 million) and the operating margin improved 80 basis points to 4.7% (H1 2006: 3.9%). The operating profit and operating margin both reflect the changing mix of business towards higher added value food ingredients and buoyant world dairy markets.
John Moloney, Group Managing Director, said: “Glanbia had a very good first half this year, with earnings per share up 26% which is ahead of market expectations. The drivers of this performance were strong results from our Food Ingredients USA and the global Nutritionals businesses, both of which are key to our strategy to diversify our earnings base into higher value added ingredients.”
Buoyant world dairy markets were also a contributing factor, as expanded demand coupled with constrained supply, saw global markets rise to record levels in the first half of the year. These market developments are also significantly positive for the dairy farming sector.
Overall, Moloney said, the outlook for Glanbia is very satisfactory with the company expecting a strong performance again in the second half. Notwithstanding the fact that there are some short-term factors in our international joint ventures, we expect to deliver full year earnings growth in the high teens, which is an upgrade to current market expectations.'
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