Irish food group Glanbia today (11 May) predicted a “strong” result for the first half of 2011 with growth from its US cheese unit, its Irish dairy arm and its nutritionals division.
Ahead of its AGM in Kilkenny today, Glanbia gave a trading update for the period from 2 January to 10 May and said the company was “performing well year-to-date”.
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Glanbia said its US cheese and global nutritionals businesses – grouped together as one division – was expected to be “ahead” on the first half of 2010.
The company said its US cheese business had put in a “satisfactory” performance despite volumes falling amid a “competitive milk procurement environment” in Idaho.
By contrast, Glanbia said its global nutritionals unit was “performing well”, with “strong” volume growth in “all its key market segments”. Glanbia added that the integration of BSN, the sports nutrition business bought in January, was “progressing well”.
In Ireland, Glanbia’s dairy business was also expected to be “ahead” compared to the first half of 2010.
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By GlobalDataThe company’s Irish dairy ingredients arm had benefitted from global dairy market conditions and higher milk volumes, although the firm there had been “some weakening in market outlook in recent weeks”.
Glanbia acknowledged that the trading environment for its consumer products business was “difficult” and said “input cost pressures remain high”.
“As a result this business is focusing on continued rationalisation of its cost base and achieving selected price increases at wholesale level,” Glanbia said.
The company’s upbeat overall outlook for the first half of 2011 meant it reiterated its forecast for an 11-13% increase in adjusted earnings per share, on a constant-currency basis.
