Record year end results for Glanbia and 2013 looking great

DESPITE the fact that a staggering 72% of its profits are generated in the US, Kilkenny food and nutritionals giant, Glanbia Plc, has committed its future to the city. Speaking to Sean Keane, group mamanging director, John Moloney said that, unike other large food companies, Glanbia would not be relocating its headquarters to America and that it had an integrated and efficient model of doing business in Ireland which inclcuded legal and intellectual rights divisions.

DESPITE the fact that a staggering 72% of its profits are generated in the US, Kilkenny food and nutritionals giant, Glanbia Plc, has committed its future to the city. Speaking to Sean Keane, group mamanging director, John Moloney said that, unike other large food companies, Glanbia would not be relocating its headquarters to America and that it had an integrated and efficient model of doing business in Ireland which inclcuded legal and intellectual rights divisions.

Mr Moloney also had god news on the jobs front. The tenders for the new milk processing plant to be built in the south of the county at Belview are due and he anticipated a sod turning ceremony at the site in a number of weeks leading to the creation of hundreds of construction jobs and up to 75 long term, full time jobs when it is completed.

Last week, Glanbia reported revenues of €2.9 billion for 2012, representing a 4.8% increase on the previous year and a record for the company. Pre-tax earnings for 2012 rose 9% to €198.8 million, while the company also reported a better-than-expected 14.2% jump in adjusted earnings per share to 52.9 cent.

The Group achieved a 22.1% increase in adjusted earnings per share in reported currency; the third consecutive year of double-digit improvement. The company’s sports nutrition products in the US market were of particular significance, with Global Nutritionals’ like-for-like revenue growing 20% which is phenomenal.

The board has recommended a final dividend of 5.43 cents per share, bringing the total dividend for the year to 9.09 cents per share – an increase of 10% on last year.

Glanbia undertook a significant programme of investment in capital projects and acquisitions in 2012 amounting to €115 million. This included the €45 million acquisition of Aseptic Solutions in the USA; the opening of a plant in Europe; and a new cheese innovation centre in Idaho.

“The prospects for 2013 are good, although we remain cautious given the global environment,” Mr Moloney said.

“We expect adjusted earnings per share growth, on a constant currency basis, of between 8% and 10% for the full year from a base of 51.02 cents. The Irish dairy processing transaction facilitates a concentrated focus on our international growth and the longer-term prospects for Glanbia are very positive andwe are in a stronger position than ever to drive the business forward and capitalise on our competitive advantage in both business-to-business and business-to-consumer nutritional products and solutions,” he added.