16th May 2007 11:12
Glanbia PLC16 May 2007 STRONG FIRST HALF PERFORMANCE; DOUBLE DIGIT GROWTH FORECASTEXPECT TO DELIVER FULL YEAR IN LINE WITH MARKET EXPECTATIONS 16 May 2007 - Glanbia Chairman, Michael Walsh, reported to the Annual GeneralMeeting in Kilkenny today that the Group is having a good first half and isexpected to deliver a strong performance, compared to a difficult first half in2006. Mr. Walsh also said that he is pleased to report that the Board andmanagement are confident of achieving double digit growth in the first half anddelivering full year results in line with market expectations. Mr. Walsh went on to say that Irish operations are performing well. ConsumerFoods is in line with expectations, although the retail sector remains highlycompetitive. The closure of the cannery operation and better markets underpin animproving performance from the pigmeat business. Agribusiness is having areasonable first half, but, as expected, continues to evolve reflecting theongoing changes in farming. The property business continues to execute well,delivering a steady pace of transactions. In Food Ingredients Ireland, globaldairy markets are firm and the recent uplift in demand and pricing is providinga welcome benefit to milk suppliers. However, Irish milk processing marginsremain tight and international dairy markets, while strong, will have increasedpotential for future volatility. International operations are having a strong first half, with good performanceforecast from Food Ingredients USA and Nutritionals. Seltzer Inc., the USNutritionals company acquired in October 2006, is performing in line withexpectations and is expected to make a good contribution in the first half.Conversely, there are some challenges arising from strong international dairycommodity markets in respect of International Joint Ventures. Overall thesebusinesses are operationally excellent and to plan in production and productdevelopment. However Glanbia has not yet been able to fully recover orcounteract the dramatic price increases in milk-related raw materials. John Moloney, Group Managing Director, commented today 'Glanbia is having astrong first half. Irish operations are performing well, Internationalbusinesses are strong and we are particularly pleased with the progress ofSeltzer, the 2006 Nutritionals acquisition. Despite the need to resolve theshort-term raw material cost issues in International Joint Ventures, we areconfident of the long-term sustainable growth of these strategic investments.The Group's portfolio of businesses, and our continuing strong focus on costefficiency, productivity and operational excellence throughout the business,positions us well to deliver good double digit growth in 2007 and beyond.' 16 May 2007 Ends For information: Geraldine Kearney Director Corporate Communications Tel: 056-7772241 Mobile 087-2319430 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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