John Moloney to leave Glanbia in strong position

Sean Keane

Reporter:

Sean Keane

John Moloney to leave Glanbia in strong position
Kilkenny based global food giant, Glanbia Plc has recorded a staggering 13% rise in its first half year revenue for 2013 to €1.68 billion. Pre-tax profits for the company based on the city’s Ring road for the six months to the end of June rose to €95 million from €88 million the same time last year. Glanbia’s Dairy Ireland division saw revenue rise but earnings fall, which the company blamed on lower volumes and higher milk input costs. The company said that the full year outlook for the group remains positive, despite some challenges for the rest of the year.

Kilkenny based global food giant, Glanbia Plc has recorded a staggering 13% rise in its first half year revenue for 2013 to €1.68 billion. Pre-tax profits for the company based on the city’s Ring road for the six months to the end of June rose to €95 million from €88 million the same time last year. Glanbia’s Dairy Ireland division saw revenue rise but earnings fall, which the company blamed on lower volumes and higher milk input costs. The company said that the full year outlook for the group remains positive, despite some challenges for the rest of the year.

It has forecast growth in adjusted earnings per share of between 8-10% on a constant currency basis, which Glanbia said reflects its expectation of positive performances in Global Performance Nutrition and Global Ingredients.

The announcement of the half year results marked the last time that outgoing CEO and Group Managing Director, John Moloney would be in charge. His tenure has been marked by unprecedented growth and success. He is being replaced by Glanbia finance director, Siobhan Talbot.

Back to the results: The company’s board is recommending an interim dividend of 4.03 cents per share, up 10% on the 3.66 cents per share the same time last year. Mr Moloney said that the group’s first half performance was driven by global performance nutrition and global ingredients, with the two units representing over 70% of the groups’ total earnings. Dairy Ireland’s performance was impacted by a ‘’very difficult’’ first half in consumer products, he said.

Revenues at its global ingredients division rose by 16.8% to €539.2 million while earnings increased by 7.7% to €57.5 million on the back of higher pricing and an enhanced product mix. It said the full year outlook is positive with year on year revenue and EBITA growth expected to be in line with the trends seen in the first half of the year. Sales at Glanbia’s Dairy Ireland division rose by 9.2% to €383.2 million in the six month period, but earnings fell by 24.4% to €12.1 million, due to lower volumes and higher milk input costs.

Glanbia said that revenue at its Joint Venture and Associates division rose by 11.5% to €431.1 million while earnings grew by 9.1% to €20.3 million. It said that Glanbia Ingredients Ireland, Southwest Cheese and Glanbia Cheese all saw revenue growth due to higher global dairy market prices as poor weather conditions in some key markets resulted in reduce supply and higher prices.