Food group Glanbia has reported a broadly unchanged performance in the first half ended 2 July, although EU farm policy changes created some problems.
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Turnover in the first half was €926m (US$1.130m), compared with €880m in the same period last year. Profit after tax was €26.694m, compared with €26.429m.
“The group’s performance at the half year was broadly in line with the first half of 2004,” said John Moloney, group managing director.
“A good performance in the US cheese business and satisfactory progress in other areas of operation were offset by a difficult first half in the agribusiness division and the chilled foods segment of the consumer foods division,” he said. “This arose from the ongoing effects of the implementation of MTR on farming and the dairy sector, a competitive market environment in Ireland and additional rationalisation to improve cost effectiveness and productivity.” MTR is a reference to the EU’s reform of its Common Agricultural Policy, known as the Mid-Term Review.
“The strategic developments in Nigeria, New Mexico and Europe, and the evolving nutritionals business, are all progressing well,” he said. “The trading environment in Ireland is expected to remain challenging for the remainder of this year. We have taken strong proactive measures on costs, productivity and market positioning and the benefits of these initiatives will flow through during the next year. Given the current difficult trading environment we expect earnings for 2005 to be broadly in line with 2004. Glanbia continues to make solid underlying strategic and operational progress and we are confident of the Group’s future prospects.”
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