FDBusiness.com

Glanbia to Create New €1.5 Billion Turnover Irish Dairy Business

 Breaking News
  • UK Grocery Prices Rising at Fastest Rate in Four Years The latest grocery market share figures from Kantar Worldpanel, for the 12 weeks to 5 November 2017, show UK supermarket sales have increased in value by 3.2% year-on-year in the run up to Christmas. Fraser McKevitt, head of retail and consumer insight at Kantar Worldpanel, explains: “Volume sales have increased by less than 1%, meaning it’s [...]...
  • Alcohol Minimum Unit Pricing to Go Ahead in Scotland The UK Supreme Court has ruled that minimum unit pricing for alcohol, which was passed overwhelmingly by the Scottish Parliament in 2012, can now proceed. Scottish Health Secretary Shona Robison has welcomed the decision and confirmed she intends to make a statement to Parliament shortly, setting out the Scottish Government’s next steps. Following the unequivocal backing [...]...
  • GEA Brings Together Technologies to Supply Extended Production Line For BMI GEA has recently been selected to supply an extended pasta filata cheese production line for BMI in Jessen, Germany. With this exemplary project GEA brings together its joint cheese-making expertise, resulting from its acquisition of de Klokslag and CMT in 2014 and 2015 respectively, with GEA’s flow and processing experience to provide a single offering for this [...]...
  • Bosch Packaging Technology Wins German Design Award 2018 The Sigpack VPF (Vertical Platform for Flat Pouches), the first freely scalable flat pouch machine from Bosch, has been honoured with the German Design Award 2018 in the Excellent Product Design category. The German Design Council presents the prestigious award on an annual basis. The German Design Award is the second prestigious accolade for the [...]...
  • Premier Foods Returns to Revenue Growth Premier Foods, the UK convenience food group, has reported group revenue of £353.3 million for the 26 weeks ended 30 September 2017 – an increase of 1.5% on the prior period – with Branded revenue in line with last year at £295.4 million while Non-branded revenue increased by 10.1% to £57.9 million. Group reported half year [...]...

Glanbia to Create New €1.5 Billion Turnover Irish Dairy Business

Glanbia to Create New €1.5 Billion Turnover Irish Dairy Business
February 24
11:48 2017

Glanbia plc, the global nutrition group, has agreed to sell a 60% interest in its wholly-owned Dairy Ireland segment to Glanbia Co-op, Ireland’s largest and most valuable co-operative with 14,773 members, for €112 million. Dairy Ireland is comprised of two business units, Glanbia Consumer Foods Ireland and Glanbia Agribusiness.

Glanbia Consumer Foods Ireland is the leading supplier of branded consumer dairy products to the Irish market, as well as an exporter of long-life dairy products. Glanbia Agribusiness supplies inputs to the Irish agriculture sector and is the leading purchaser and processor of grain and the leading manufacturer of branded animal feed in Ireland. Dairy Ireland also has holdings in a number of associates involved in primary manufacture and distribution of farm inputs.  All of Dairy Ireland’s manufacturing operations are based in the Republic of Ireland.

In 2016, Glanbia’s Dairy Ireland segment delivered revenue of €616.2 million, EBITA of €30.7 million and an EBITA margin of 5.0%. Dairy Ireland accounted for 10.1% of Glanbia plc’s wholly owned EBITA in 2016.

Glanbia plc and Glanbia Co-op intend to form a new entity, ‘Glanbia Ireland’, which will encompass Glanbia Consumer Foods Ireland, Glanbia Agribusiness and Glanbia Ingredients Ireland, an existing joint venture between the two partners. The ‘Glanbia Ireland’ strategic joint venture will be 60% owned by Glanbia Co-op and 40% owned by Glanbia plc.

A 60:40 joint venture between Glanbia Co-operative Society and Glanbia plc, Glanbia Ingredients Ireland is the largest dairy processor in Ireland, processing a total of 2.2 billion litres of milk per year with approximately 700 employees and sales revenue of over €836 million in 2016. Its products, the large majority of which are exported to more than 60 countries, include milk powders, butter, cheese, whey protein, milk protein and casein. Its customers include many of the large global food and infant formula manufacturers as well as more regionally focused players across Europe, Middle East, Africa and Asia.

Siobhan Talbot, group managing director of Glanbia, comments: “The creation of Glanbia Ireland makes strategic sense for the shareholders of both Glanbia Co-op and Glanbia plc. It brings together in a single structure the ownership, operations and objectives of Glanbia’s Irish dairy and agri-businesses. With €1.5 billion of annual revenue and a 2.4 billion litre milk pool, it will be a large scale, efficient business with a high quality supply chain and the strength and diversity to face the future with confidence. Glanbia plc will continue to focus on its global nutrition strategy through the platforms of Glanbia Performance Nutrition (GPN), Glanbia Nutritionals (GN) and strategic joint ventures for the benefit of all shareholders.”

There are currently plans for a strategic investment programme in Glanbia Ireland of between €250 million to €300 million in the period between 2017 and 2020. This investment programme will increase capacity to support the stated growth ambitions of the Glanbia milk suppliers and optimise value adding opportunities. The financing of the investment will largely be sourced from dedicated bank facilities in Glanbia Ireland.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • November 28, 2017Fi Europe
  • December 4, 2017Plastics and Paper in Contact with Foodstuffs 2017
  • January 8, 2018RAI Exhibition
  • January 16, 2018Sival Plant Production Trade Show
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements