Return to Profitability in Ireland Underpins Strong Glanbia Performance
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.”
