KILKENNY’s flagship enterprise, Glanbia Plc has announced yearly profits ahead of market expectations helped by a return to profit in its Irish dairy ingredients business. It also said that the failed attempt by the farmer owned co-op that has a majority interest in Glanbia to buy it was ‘unlikely to be revisited by the co-op in the medium-term”.
Trading profits were up 22.8% to €136.5 million for 2010, as revenue climbed by 18% to €2.17 billion. Pre-tax profits, which included some once-off items, were €134.7 million down from €143 million in 2009. Earnings per share rose 24% to 38.07 cent and a full year dividend of 7.52 cent has been proposed.
One of the key area of growth was in Dairy Ireland, which comprises the company’s dairy ingredients, consumer products, and agri-business divisions in Ireland. it saw its profits increase more than 80 per cent to €43.5 million.
Strong demand in Asia lifted world dairy markets during the year. Managing director John Moloney said Glanbia had also benefited from strong sales growth in its three nutritional businesses and cost-cutting measures in Ireland. He said he expected the trading environment in 2011 to be positive, and signalled earnings per share growth of 11% to 13%.
Profits at the US cheese and global nutritionals arm were up 4.2% to €93.9 million, as sales rose 29% to €1 billion. Profits at joint ventures and associates were 24% higher at €21.6 million, as revenue jumped 40% to €416.6 million.
Managing director John Moloney said the group benefited from strong sales growth in three of its nutritionals businesses as well as the delivery of cost-cutting measures in Ireland. “Our current expectation is that the trading environment for 2011 will be broadly positive,” he added.