Irish food group Glanbia said today (18 November) that it forecasts its full-year results to be in line with market expectations.

The company said its businesses were performing as predicted in August, when it forecast double-digit earnings growth for the full year.

Glanbia's Irish division is trading "satisfactorily" for the second half of the year, the company said, despite the market environment remaining "challenging" with consumers becoming more value conscious.

Ongoing cost improvements and cost recovery in key market segments have improved margins and operating profits, Glanbia said.

"The changing global economic environment will have implications for consumer
demand and in response to this, together with an ongoing need to remain competitive, the group is undertaking a significant rationalisation programme across its businesses," the company said in a statement.

The cost of this programme which will be reflected as an exceptional cost in the
current year is estimated at EUR16m (US$20.20m).

Glanbia said demand for cheese in the US has remained "strong" and the nutritionals businesses are "performing well". 

Glanbia's nutritionals business is set to benefit from a first-time contribution from Optimum Nutrition, which was acquired for EUR256m in August, and is performing to expectations, the company said.