Glanbia is to shake up its domestic consumer brands business, which has seen profits come under pressure in tough trading conditions in the Irish group’s home market.
The dairy and ingredients group, which makes Avonmore milk and Kilmeaden cheese, said the changes are bring brought in to ensure its consumer unit in Ireland “remains competitive”.
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Glanbia has enjoyed growth from its dairy ingredients and sports nutrition businesses in recent years. However, its Irish consumer division has suffered as local consumers become more cautious in the country’s tough economic conditions.
In the first half of the year, EBITDA from Glanbia’s Dairy Ireland business, of which the consumer unit is a part, fell by almost a quarter. The division also saw EBITDA drop in 2012, compared to 2011.
The revamp will include investment in “new technologies and new facilities”, Glanbia insisted. However, the company is also looking to “redesign parts” of its supply network, restructure its head office and cut costs overall.
“While these changes will result in the creation of a number of new jobs, there will also regrettably be a number of redundancies,” Glanbia said.
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By GlobalDataThe company said it could provide more details as it is in talks with staff and their representatives.
