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.
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.”