Glanbia books bumper profits, sales

Glanbia books bumper profits, sales

Irish dairy and ingredients group Glanbia has booked a jump in full-year earnings and sales, which were both up almost a quarter.

EBITA rose 22.8% in 2011, the company said today (29 February), rising to EUR186.1m (US$249.4m). Sales increased 26.2% to EUR2.7bn, the company added. Glanbia pointed to a "strong" performance from its global nutritionals business and a "good" showing from its dairy division in Ireland.

While EBITA margins declined 20 bps to 6.8% due to input cost pressures, the company said that it was pleased with the performance of its nutrition and dairy units.

Glanbia's Performance Nutrition business was boosted by the US$44m acquisition and successful integration of BSN, which "complemented" the "strong" organic revenue growth across the company's three nutrition businesses.

"These businesses continue to outpace market growth rates, driven by strong market positions and science based, customer focused innovation," group MD John Moloney said.

Meanwhile, Moloney added that "positive global dairy markets" underpinned a "solid" performance from Dairy Ireland, despite challenges in the consumer products business.

"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," Moloney concluded.

Glanbia said that it expects adjusted earnings per share to rise by 5-7% on a constant currency basis. In 2011, adjusted EPS grew 26.7% to 48.22 cents.