Buoyed by strong global dairy markets, good demand in key nutritional sectors and first time contributions from acquisitions, Glanbia, the Irish and international nutritional solutions and cheese group, has increased EBITA pre exceptional by 43.6% to Eur121.6 million on a constant currency basis for the six months ended July 2nd 2011. Total group revenue grew by 33.4% to Eur1.64 billion. Group EBITA margin pre exceptional improved by 50 basis points to 7.6%.

Glanbia’s largest business segment by revenue is Dairy Ireland, which represents 43.1% of total group sales and 28.8% of EBITA pre exceptional. The US Cheese & Global Nutritionals business contributed 41.2% of Glanbia’s revenue and is the largest division by EBITA accounting for 57.9% of the total in the first half.

John Moloney, group managing director of Glanbia.

DairyIreland performed strongly in the first half of 2011 relative to the prior year, with revenue rising 30% to Eur705.6 million. Strong commodity prices and higher volumes underpinned a 63.6% increase in EBITA pre exceptional to Eur35.0 million.

US Cheese & Global Nutritionals also delivered a strong performance in the first six months of 2011, increasing revenue by 37.4% to Eur674.0 million. EBITA pre exceptional grew 34.1% to Eur70.4 million, mainly due to growing demand across all key nutritional markets and product categories.

“We have had an excellent first half delivering adjusted earnings per share growth of 55%, on a constant currency basis. Global dairy markets were strong as growth in dairy consumption in developing regions underpinned sustained demand and higher prices.US dairy markets were also significantly higher relative to the first half of last year,” says John Moloney, group managing director of Glanbia.

He continues: “Glanbia continues to perform well. The overall trading environment remains positive and while global dairy market prices appear to have peaked in the current cycle, indications are for a relatively modest softening in prices for the remainder of the year. Demand-led growth across all product categories in Global Nutritionals is also strong. The calibre of our first half performance, leading market positions and strength of our global portfolio, positions Glanbia strongly for the full year. We are upgrading our 2011 guidance to 18% to 20% growth in adjusted earnings per share, on a constant currency basis.”

Buoyed by improved global dairy markets and good demand in key nutritionals sectors, Glanbia, the global nutritional solutions and cheese group, increased total revenue by 21.4% to Eur2.6b and EBITA, before exceptionals, by 21.6% to Eur173.2m for the year ended January 1st 2011. The improvement in performance was driven by the return to profit of Glanbia’s Dairy Ingredients Ireland business, after a first time loss in 2009, as its strategic cost management programmes in Ireland yielded targeted annualised savings.

Revenue in US Cheese & Global Nutritionals was up 29.0% to Eur1.0b and revenue in Dairy Ireland grew 10.7% to Eur1.1b. Revenue from joint ventures and associates grew 40.0% to Eur416.6m.

Dairy Ireland improved EBITA pre exceptional by 74.2% to Eur47.9m. US Cheese & Global Nutritionals delivered reasonable year-on-year EBITA pre exceptional growth, underpinned in particular by a good performance by Global Nutritionals. US Cheese & Global Nutritionals EBITA pre exceptional grew 4.2% to Eur104.5m. Group EBITA margin pre exceptional grew 20 basis points to 7.0%.

John Moloney, group managing director of Glanbia.

“Glanbia had an excellent year with results ahead of expectations,” says John Moloney, group managing director of Glanbia. “The group benefited from strong organic revenue growth in our three nutritionals businesses, a return to profitability in Dairy Ingredients Ireland and the delivery of our strategic cost reduction programmes in Ireland. We delivered strong revenue and earnings growth and our 2010 performance reflects the strength and diversity of our businesses.”

He continues: “The group is well positioned for 2011. Our current expectation is that the trading environment for 2011 will be broadly positive. Global dairy markets are expected to remain firm, underpinned by robust demand, particularly from Asia, and demand-led growth in key nutritionals sectors. In January we acquired BSN, a leading US sports nutrition business which is an excellent strategic fit with our Performance Nutrition business. For 2011, given our strong market positions and growing portfolio, we are forecasting 11% to 13% growth in adjusted earnings per share, on a constant currency basis.”