Half Yearly Report

26th Aug 2009 07:00



NEWS RELEASE Glanbia Corporate Communications Telephone + 353 56 777 2200 Facsimile + 353 56 77 50834 www.glanbia.com

A world of cheese and nutritionalingredients

2009 Half yearly financial report

Copies of this interim report are available for download from the Group's website at www.glanbia.com.

For further information contact

Glanbia plc +353 56 777 2200 Siobhan Talbot, Group Finance Director  Geraldine Kearney, Corporate Communications Director + 353 87 231 9430

ON TARGET TO ACHIEVE 2009 FULL YEAR EARNINGS GUIDANCE

DIFFICULT FIRST HALF as expected

26 August 2009 - Glanbia plc ('Glanbia'), the international cheese and nutritional ingredients Group, announces its results for the half year ended 4 July 2009. The structure of this announcement reflects revised segmental reporting under the newly applicable accounting standard International Financial Reporting Standard ('IFRS') 8, 'Operating Segments'. Full details are contained on page 2 of this announcement.

2009 Half year results summary

	HY 2009	HY 2008	Change
Revenue(1)	€944.9 m	€1,106.2 m	- 14.6 %
Operating profit pre exceptional	€47.8 m	€56.5 m	- 15.4 %
Operating margin pre exceptional	5.1%	5.1%	No change
Net financing costs	(€12.5 m)	(€9.1 m)	+ €3.4 m
Share of results of joint ventures and associates(1)	€2.7 m	€5.6 m	- €2.9m
Profit before tax pre exceptional	€38.0 m	€53.1 m	- 28.4 %
Taxation pre exceptional	(€7.4 m)	(€9.0 m)	- €1.6 m
Profit after tax pre exceptional	€30.6 m	€44.1 m	- 30.6%
Exceptional items(2)	-	(€2.3 m)	See note
Basic earnings per share	10.30 c	13.98 c	- 26.3%
Adjusted earnings per share(3)	12.35 c	15.74 c	- 21.5%
Dividend per share in respect of the half year	2.89 c	2.75 c	Up 5%
Net debt	€546.5 m	€296.3 m	Up €250.2 m

(1) Revenue including Glanbia's share of the revenue of joint ventures & associates was €1.1 billion for the first half of 2009, compared with €1.3 billion for the first half of 2008. Share of results of joint ventures & associates is an after interest and tax amount.

(2) The €2.3 million exceptional in the first half of 2008 is additional costs of €2.6 million associated with the disposal of the Group's Pigmeat business (announced in March 2008) and a related tax credit of €0.3 million. There were no exceptional items in the first half of 2009. 

(3) Before exceptional items and amortisation of intangible assets.

John Moloney, Group Managing Director, said:

"A growing contribution from higher margin businesses and a strategic cost reduction programme have enabled us to counterbalance unprecedented market circumstances and deliver a reasonable set of results despite a very substantial first time loss in Irish Dairy Ingredients.

It has been, without doubt, a difficult six months. The sustained downturn in the global economy led to weakening consumer confidence. In addition, international dairy prices were sharply down on 2008 resulting in a dramatic reduction in dairy product returns and US cheese prices reached historic lows. The expected impact of these challenges led to a revision of earnings guidance for the full year. While we remain cautious in our outlook today, we expect the overall rate of decline to moderate in the second half. Earnings guidance for the full year is unchanged with full year adjusted earnings expected to be 30 to 32 cents per share.

We are pleased with the excellent operational performance throughout the Group and the success to date of a major cost saving programme and we remain confident in the businesses that are central to our growth strategy."

Presentation, webcast and conference calls

In conjunction with these results, Glanbia plc will conduct a conference call on Wednesday, 26 August 2009 at 10.30am (GMT) and a number of events for the financial community. Dial in details for the conference call are: Ireland dial 1890 924 780; UK dial Tel: 0208 974 7940; Europe dial Tel: +44 208 974 7940; US dial 718 354 1175. The access code for participants is: 395 190. A copy of the results announcement and the presentation to accompany this conference call will be available on the Group's website www.glanbia.com in the results centre.

Interim management report

for the half year ended 4 July 2009

Overview

Segmental analysis

Previously the Group reported on the basis of three segments - Ireland, International and Joint Ventures & Associates. These half year results and future reporting reflect revised segmental analysis under the newly applicable accounting standard International Financial Reporting Standard ('IFRS') 8, 'Operating Segments'. On this basis Glanbia has determined that there are four operating segments: US Cheese & Global Nutritionals; Dairy Ireland (incorporating Dairy Ingredients, Consumer Products and Agribusiness); Joint Ventures & Associates; and Other (including Property, a small dairy operation in Mexico and Pigmeat, which was disposed of in March 2008). Prior half and full year numbers have been restated in accordance with this new segmental analysis.

Market commentary 

In the first half of the year Glanbia's trading environment was impacted by the downturn in the global economy and consumer confidence. This resulted in a sharp decline in international dairy prices leading to a dramatic reduction in dairy product returns. In addition low US cheese prices were at historical lows despite stable US domestic demand. 

Glanbia's growth strategy has been successful in developing a more diversified earnings base and building a portfolio of higher margin businesses thereby reducing earnings exposure to commodity dairy markets. This is supported throughout the Group by a very strong focus on operational excellence and cost management. As a result, while unprecedented market conditions have led to a loss of earnings momentum for the half and full year, many aspects of the Group delivered reasonable performances despite a very challenging trading environment. 

Results summary

2009 half year results summary

	US Cheese & Global Nutritionals	Dairy Ireland	Other	Group total	Joint Ventures & Associates	Total  (including joint ventures & associates)
Revenue (€m)*	401.5	540.5	2.9	944.9	148.0	1,092.9
Operating profit (€m)*	44.9	5.9	(3.0)	47.8	6.3	54.1
Operating margin (%)	11.2	1.1	-	5.1	4.3	5.0

* Reported Group revenue and operating profit excludes joint ventures & associates. Share of results of joint ventures & associates is reported as an after interest and tax amount in the condensed income statement. 

 

 

Principal risks and uncertainties affecting the second half performance

The management of risk is key to achieving Glanbia's strategic and financial objectives and there is an on-going process of assessing, managing, monitoring and reporting on the significant risks faced by individual Group companies and by the Group as a whole. The Board has the ultimate responsibility for risk management and the key areas of risk and the Group's mitigation processes are set out in detail in the 2008 Annual Report and on the Group's website at www.glanbia.com.

Glanbia has issued consistent guidance to the market with regard to the outlook for the full year 2009. These half year results document the impact on the Group's performance of:

the downturn in the global economy and, as a consequence, weaker consumer confidence and demand;

the sharp decline in international dairy prices and resulting dramatic reduction in dairy product returns; and

historically low US cheese prices.

In the second half of the year, while there are some improving trends, any unanticipated deterioration in global economic prospects may further affect pricing and volatility in the global dairy market and US Cheese markets which could lead to short term weakening in the Group's performance.

2009 Group outlook

There is no change to the 2009 outlook and revised earnings guidance. As previously announced adjusted earnings per share guidance for 2009 is between 30 to 32 cents for the full year.

Finance review

Income statement

In the first half of 2009 the Group results were primarily impacted by the performance of Dairy Ingredients, which is included in the Dairy Ireland segment. This business, which is substantially exposed to international dairy commodity markets, became loss making in the first half of the year as the magnitude and pace of the decline in global dairy markets created an environment where milk price was maintained above market returns.

Group revenue declined 14.6% to €944.9 million (HY 2008: €1,106.2 million). Operating profit pre exceptional declined 15.4% to €47.8 million (HY 2008: €56.5 million). Operating margins were maintained at 5.1% (HY 2008: 5.1%). The highlight is the strong growth in margins in the US Cheese & Global Nutritionals business segment which increased by 380 basis points to 11.2%. Group operating margins were also supported by the benefits of recent cost saving and rationalisation programmes.  

Net financing costs

Financing costs increased €3.4 million to €12.5 million (HY 2008: €9.1 million) due mainly to the financing cost associated with the acquisition of Optimum Nutrition. EBIT Interest cover was 3.8 times compared to 6.2 times in the first half of 2008. Earnings before interest, tax, depreciation and amortisation ('EBITDA') interest cover was 5.6 times compared to 8 times in the first half of 2008. The Group's average interest rate for the half year 2009 was 4.5% compared to 5.9% for half year 2008. Glanbia operates a policy of fixing a significant amount of its interest exposure with approximately 95% of the Group's net debt currently contracted at fixed interest rates for 2009 and approximately 70% contracted at fixed rates for 2010.

Joint Ventures & Associates

Glanbia's share of revenue from Joint Ventures & Associates declined 20.6% to €148.0 million (HY 2008: €186.4 million). Lower US cheese and whey markets impacted Southwest Cheese while lower market prices also reduced revenue in Glanbia Cheese. Glanbia's share of profits post interest and tax declined to €2.7 million (HY 2008: €5.6 million). Southwest Cheese delivered a good result in the first half albeit lower than a strong 2008. The performance of Glanbia Cheese in the UK declined marginally as selling prices reduced at a faster pace than raw material costs. Despite growing revenues the Nutricima result declined relative to the first half of 2008 due to the inability to recover in the market the cost of higher priced raw materials already in the supply chain. 

Profit before tax pre exceptional

Profit before tax pre exceptional declined 28.4% to €38.0 million (HY 2008: €53.1 million). 

  

Taxation charge

Taxation for the first half of 2009 amounted to a net charge of €7.4 million (HY 2008: €9.0 million) reflecting the reduced profitability of the Group in the period.

Exceptional items

There were no exceptional items in the first half of 2009. For the corresponding period last year there was a net exceptional amounting to €2.3 million.

Basic earnings per share

Basic earnings per share decreased 26.3% from 13.98 cents to 10.30 cents. Adjusted earnings per share decreased 21.5% to 12.35 cents (HY 2008: 15.74 cents). 

Balance sheet and Cash flow

The Group's net debt increased by €94.4 million from €452.1 million at year end 2008 to €546.5 million at half year ended 4 July 2009. EBITDA inflows of €69.9 million were offset by the seasonal increase in the Group's working capital requirement of €96.5 million, capital expenditure of €34.1 million and other payments including dividends, interest and tax of €22.7 million.

 

Relative to half year 2008, net debt increased by €250.2 million to €546.5 million (HY 2008: €296.3 million), the primary driver of this increase was the acquisition of Optimum Nutrition in August 2008 for €217.9 million. 

 

The Group has total debt facilities of €761.0 million with bank facilities of €697.5 million and €63.5 million cumulative redeemable preference shares. The Group increased its bank facilities by €100m during the first half with the average age to maturity of the Group's debt facilities now at 3.6 years.

The equity of the Group decreased €10.0 million in the first half from €227.9 million at year end 2008 to €217.9 million at the half year, as retained profits for the period were offset by adverse reserve movements in the Group's pension deficit. The Group pension deficit increased by €35.9 million from €164.4 million at year end 2008 to €200.3 million at the half year. The deficit on the Group's UK defined benefit schemes amounts to €28.5 million with the Irish schemes deficit amounting to €171.8 million. Within the schemes the deficit was adversely impacted in the half year by a lower return than expected on pension assets and a revision to the actuarial assumptions. A strategic review of the funding deficit on the Irish pension schemes is in progress. 

Dividends 

The Board is recommending an interim dividend of 2.89 cents per share (HY 2008: 2.75 cents per share), an increase of 5%. Dividends will be paid on Wednesday 30 September 2009 to shareholders on the register of members as at Friday 11 September 2009. Irish withholding tax will be deducted at the standard rate where appropriate.

Operations review

US Cheese & Global Nutritionals

2009 half year results summary

	HY 2009	HY 2008	Change
Revenue	€401.5 m	€394.8 m	Up 1.7%
Operating profit pre exceptional	€44.9 m	€29.4 m	Up 52.7%
Operating margin pre exceptional	11.2%	7.4%	Up 380 bps

In the first half of the year overall demand in the US Cheese & Global Nutritionals business segment remained robust. A decline in revenue, driven by lower market pricing for cheese and certain nutritional products, was offset by the acquisition of Optimum Nutrition which further improved the Global Nutritionals mix of businesses. 

US Cheese delivered a good performance in a volatile market environment with cheese prices at historical lows. While demand for cheese was resilient and operating margins were stable, operating profit declined due to lower market pricing relative to a strong 2008. 

Global Nutritionals was to a lesser extent impacted by lower global dairy markets and continued to deliver good organic growth through innovation and new product development. The Group is pleased with the performance of Optimum Nutrition with demand and growth remaining positive across all areas of the business. Operating profit and operating margin for the Global Nutritional business unit increased.

2009 Full year outlook

The US cheese market is forecast to remain relatively low for the second half of 2009. US milk production is expected to continue to contract in response to the current low milk price and as a result some rise in market prices is expected over the medium term. However, average 2009 prices are likely to remain significantly below 2008 levels. While demand remains robust a full year decline in revenue and operating profit is expected as a consequence of significantly lower cheese markets throughout this year. US Cheese operations continue to deliver an excellent cost and operational performance. 

In Global Nutritionals organic growth is expected to be solid and key growth segments are forecast to deliver a good performance in the second half.

For 2009, while revenues are forecast to be behind year-on-year for US Cheese & Global Nutritionals, this segment is expected to deliver a marginally improved operating profit and operating margin.

Dairy Ireland

2009 half year results summary

	HY 2009	HY 2008	Change
Revenue	€540.5 m	€672.3 m	Down 19.6%
Operating profit pre exceptional	€5.9 m	€25.7 m	Down 77%
Operating margin pre exceptional	1.1%	3.8%	Down 270 bps

The performance of Dairy Ireland declined sharply due to a very significant loss in Dairy Ingredients. This business exports substantially all of its output and is therefore significantly impacted by trends in global dairy markets. Relative to the first half of 2008 global dairy markets declined sharply resulting in a significant decline in the performance of this business.  Despite a reduction in the milk price paid to suppliers in the first half of the year the pace and scale of market changes were such that the full extent of market declines were not fully reflected in milk cost. The decision to support milk price in this manner was made in the interest of helping to maintain the Group's Irish dairy supply and trading base in very challenging circumstances for farming. As a result the performance of Dairy Ireland was significantly reduced.

 

Consumer Products had a challenging first half. Weaker consumer confidence, growing value consciousness and an increase in sterling based imports created an extremely competitive food retailing environment in Ireland. These factors' together with selected price reductions, which were implemented to remain competitive and defend market positions resulted in a decline in Consumer Products revenue in the first half. An improvement in operating profit and operating margin was achieved mainly through the implementation of a major cost reduction programme.

The effect of the decline in global dairy markets has had serious implications for farm incomes and this impacted Glanbia's farm supply and trading base. Consequently revenue, operating profit and operating margin from the sale of farm inputs by Agribusiness were lower as expected in the first half. This business continues to restructure and reduce its cost base.

2009 Outlook

In the second half of 2009 some seasonal uplift in global dairy markets is expected. This combined with an improved product mix and aggressive cost management is expected to result in a small loss in Irish Dairy Ingredients in the second half. However for the full year this business will remain significantly loss making. Revenues in the second half of the year are forecast to decline in Consumer Products and Agribusiness albeit at a slower pace than in the first half. Overall operating profit and operating margin for Dairy Ireland will be significantly lower than 2008, as expected.

  

Joint Ventures & Associates

2009 half year results summary

	HY 2009	HY 2008	Change
Revenue(1)	€148.0 m	€186.4 m	Down 20.6%
Operating profit pre exceptional(1)	€6.3 m	€12.1 m	Down 47.9%
Operating margin pre exceptional(1)	4.3%	6.5%	Down 220 bps
Profit after interest and tax(2)	€2.7 m	€5.6 m	Down €2.9 m

(1) Not included in reported results. (2) Included in the income statement as share of results of joint ventures and associates

The decline in the performance of the Group's Joint Ventures & Associates was driven by a reduction in the performance of Southwest Cheese in the USA relative to a strong first half in 2008. While volumes were solid in Southwest Cheese in the first half, revenue and profits were negatively affected by lower market prices. Nutricima in Nigeria delivered good top line growth but profits and margins were negatively affected as product produced from high priced raw materials moved through the supply chain. The performance of Glanbia Cheese in the UK was marginally lower than 2008 as the rate of decline in sales prices outpaced milk input cost reductions.

2009 Outlook

Southwest Cheese is expected to deliver a full year result broadly in line with 2008 as cheese markets are forecast to slowly improve in the second half of the year. The planned 33% expansion in production capacity is well underway and is forecast to be commissioned in the second quarter of 2010. Nutricima is expected to deliver a positive performance for the full year aided by a first time contribution from a new plant producing UHT milk and ready to drink products, tight cost management and improved input costs. The performance of Glanbia Cheese is expected to be marginally lower than 2008 for the full year. Overall profits for Joint Ventures & Associates are expected to be broadly similar to 2008 and margins are forecast to improve somewhat.

Other 

2009 half year results summary

	HY 2009	HY 2008	Change
Revenue	€2.9 m	€39.1 m	Down €36.2 m
Operating profit pre exceptional	(€3.0 m)	€1.4 m	Down €4.4 m

This segment includes Property, a small dairy operation in Mexico and the Pigmeat business which was disposed in March 2008. In the first half, an absence of property transactions and a loss at the Mexican operation due to low global dairy markets led to a poor performance. The decline in revenue is attributed to the disposal of the Pigmeat business. The full year outcome is expected to be broadly similar to the half year result and a review of this segment is being undertaken in the second half of 2009.

Responsibility statement

The Directors are responsible for preparing the Half Yearly Financial Report in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Irish Financial Services Regulatory Authority and with IAS 34, Interim Financial Reporting as adopted by the European Union.

The Directors confirm that, to the best of their knowledge:

The Group Condensed Financial Statements for the half year ended 4 July 2009 have been prepared in accordance with the international accounting standard applicable to interim financial reporting adopted pursuant to the procedure provided for under Article 6 of the Regulation (EC) No. 1606/2002 of the European Parliament and of the Council of 19 July 2002;

The Half Yearly Financial Report includes a fair review of the important events that have occurred during the first six months of the financial year, and their impact on the Group Condensed Financial Statements for the half year ended 4 July 2009, and a description of the principal risks and uncertainties for the remaining six months;

The Half Yearly Financial Report includes a fair review of related party transactions that have occurred during the first six months of the current financial year that have materially affected the financial position or the performance of the Group during that period and any changes in the related parties transactions described in the last Annual Report that could have a material effect on the financial position or the performance of the Group.

 

On behalf of the Board

John Moloney Siobhan Talbot

Group Managing Director Group Finance Director 

25 August 2009

Condensed income statement

for the half year ended 4 July 2009

			Half year 2009		Half year 2008						Year 2008
					Pre-						Pre-
			Total		exceptional		Exceptional		Total		exceptional		Exceptional		Total
	Notes		2009		2008		2008		2008		2008		2008		2008
			€'000		€'000		€'000		€'000		€'000		€'000		€'000
Revenue	3		944,852		1,106,177		-		1,106,177		2,232,161		-		2,232,161
Cost of sales			(783,422)		(939,635)		-		(939,635)		(1,890,549)		(10,113)		(1,900,662)
Gross profit			161,430		166,542		-		166,542		341,612		(10,113)		331,499
Distribution expenses			(62,860)		(61,707)		-		(61,707)		(121,373)		(3,251)		(124,624)
Administration expenses			(50,763)		(48,295)		(2,583)		(50,878)		(86,185)		(5,939)		(92,124)
Operating profit			47,807		56,540		(2,583)		53,957		134,054		(19,303)		114,751
Finance income	6		2,784		2,378		-		2,378		5,590		-		5,590
Finance costs	6		(15,274)		(11,444)		-		(11,444)		(26,695)		-		(26,695)
Share of results of joint ventures and associates			2,657		5,611		-		5,611		7,306		(947)		6,359
Profit before taxation			37,974		53,085		(2,583)		50,502		120,255		(20,250)		100,005
Income taxes	7		(7,417)		(9,020)		323		(8,697)		(21,528)		892		(20,636)
Profit for the period			30,557		44,065		(2,260)		41,805		98,727		(19,358)		79,369
Attributable to:
Equity holders of the Parent			30,188						40,997						78,399
Minority interests			369						808						970
			30,557						41,805						79,369
Basic earnings per share (cents)	9		10.30						13.98						26.76
Diluted earnings per share (cents)	9		10.29						13.92						26.63

Condensed statement of comprehensive income

for the half year ended 4 July 2009

			Half year		Half year		Year
	Notes		2009		2008		2008
			€'000		€'000		€'000
Profit for the period			30,557		41,805		79,369
Other comprehensive income
Actuarial loss - defined benefit schemes	13		(41,141)		(1,252)		(68,246)
Deferred tax on actuarial loss/(gain)	13		4,496		(709)		7,084
Share of actuarial loss - joint ventures			-		-		(204)
Currency translation differences	13		4,887		(7,124)		17,251
Fair value adjustments	13		2,256		2,610		(23,894)
Deferred tax on fair value adjustments	13		183		(483)		964
Other comprehensive expense for the period, net of tax			(29,319)		(6,958)		(67,045)
Total comprehensive income for the period			1,238		34,847		12,324
Total comprehensive income attributable to:
Equity holders of the Parent			869		34,039		11,354
Minority interest			369		808		970
			1,238		34,847		12,324

Condensed statement of changes in equity

for the half year ended 4 July 2009

Half year 2009

		Share		Other		Retained				Minority		Total
	Notes	capital		reserves		earnings		Total		interest		equity
		€'000		€'000		€'000		€'000		€'000		€'000
Balance at 3 January 2009		97,320		102,882		19,707		219,909		8,010		227,919
Profit for the period		-		-		30,188		30,188		369		30,557
Actuarial loss - defined benefit schemes	13	-		-		(41,141)		(41,141)		-		(41,141)
Deferred tax on actuarial loss	13	-		-		4,496		4,496		-		4,496
Fair value adjustments	13	-		2,256		-		2,256		-		2,256
Deferred tax on fair value adjustments	13	-		183		-		183		-		183
Currency translation differences	13	-		4,887		-		4,887		-		4,887
Total comprehensive income/ (expense)		-		7,326		(6,457)		869		369		1,238
Dividend paid during the period	13	-		-		(11,016)		(11,016)		-		(11,016)
Credit to share options	13	-		(203)		-		(203)		-		(203)
Balance at 4 July 2009		97,320		110,005		2,234		209,559		8,379		217,938

Goodwill previously written off amounting to €93.0 million (2008: €93.0 million) is included in opening and closing retained earnings. 

Half year 2008

		Share		Other		Retained				Minority		Total
	Notes	capital		reserves		earnings		Total		interest		equity
		€'000		€'000		€'000		€'000		€'000		€'000
Balance at 29 December 2007		98,450		107,909		21,176		227,535		7,040		234,575
Profit for the period		-		-		40,997		40,997		808		41,805
Actuarial loss - defined benefit schemes	13	-		-		(1,252)		(1,252)		-		(1,252)
Deferred tax on actuarial loss	13	-		-		(709)		(709)		-		(709)
Fair value adjustments	13	-		2,610		-		2,610		-		2,610
Deferred tax on fair value adjustments	13	-		(483)		-		(483)		-		(483)
Currency translation differences	13	-		(7,124)		-		(7,124)		-		(7,124)
Total comprehensive (expense)/ income		-		(4,997)		39,036		34,039		808		34,847
Dividend paid during the period	13	-		-		(10,494)		(10,494)		-		(10,494)
Cost of share options	13	-		149		-		149		-		149
Shares issued	13	3		-		-		3		-		3
Premium on shares issued	13	102		-		-		102		-		102
Shares purchased	13	(1,407)		-		-		(1,407)		-		(1,407)
Balance at 28 June 2008		97,148		103,061		49,718		249,927		7,848		257,775

Goodwill previously written off amounting to €93.0 million (2007: €93.0 million) is included in opening and closing retained earnings. 

  

Condensed balance sheet

as at 4 July 2009

			Half year		Half year		Year
	Notes		2009		2008		2008
ASSETS			€'000		€'000		€'000
Non-current assets
Property, plant and equipment			371,200		311,232		361,131
Intangible assets			353,175		127,991		359,212
Investments in associates			11,932		11,543		11,597
Investments in joint ventures			63,027		52,317		64,895
Trade and other receivables			21,424		26,895		11,929
Deferred tax assets			31,438		20,632		25,380
Available for sale financial assets			19,702		30,136		24,112
Derivative financial instruments			3,521		1,220		2,754
			875,419		581,966		861,010
Current assets
Inventories			229,200		283,218		267,422
Trade and other receivables			241,959		286,341		183,587
Derivative financial instruments			18,531		8,685		10,378
Cash and cash equivalents	11		89,456		123,738		132,572
			579,146		701,982		593,959
Total assets			1,454,565		1,283,948		1,454,969
EQUITY
Issued capital and reserves attributable to equity holders of the Parent
Share capital and share premium	13		97,320		97,148		97,320
Other reserves	13		110,005		103,061		102,882
Retained earnings	13		2,234		49,718		19,707
			209,559		249,927		219,909
Minority interests	13		8,379		7,848		8,010
Total equity			217,938		257,775		227,919
LIABILITIES
Non-current liabilities
Borrowings	11		635,063		419,134		569,374
Derivative financial instruments			7,803		5,180		9,248
Deferred tax liabilities			59,099		37,122		59,056
Retirement benefit obligations	14		200,338		106,942		164,410
Provisions for other liabilities and charges	12		3,647		12,227		4,899
Capital grants			11,985		3,403		12,694
			917,935		584,008		819,681
Current liabilities
Trade and other payables			282,788		421,562		351,452
Current tax liabilities			3,090		4,145		332
Borrowings	11		890		886		15,281
Derivative financial instruments			19,247		6,112		16,815
Provisions for other liabilities and charges	12		12,677		9,460		23,489
			318,692		442,165		407,369
Total liabilities			1,236,627		1,026,173		1,227,050
Total equity and liabilities			1,454,565		1,283,948		1,454,969

Condensed cash flow statement

for the half year ended 4 July 2009

					Half year		Half year				Year
		Notes			2009		2008				2008
					€'000		€'000				€'000
Cash flows from operating activities
Cash (absorbed by)/generated from operations		19			(35,205)		64				146,946
Interest received					1,743		2,213				7,149
Interest paid					(15,073)		(10,816)				(30,768)
Tax paid					(4,659)		(13,720)				(26,096)
Net cash (absorbed by)/generated from operating activities					(53,194)		(22,259)				97,231
Cash flows from investing activities
Dividend received from joint ventures					9,360		281				451
Disposal/(purchase) of available for sale investments					2,026		(644)				2,513
Acquisition of subsidiary, net of cash acquired					(544)		-				(217,942)
Payment of deferred consideration on acquisition of subsidiaries					(272)		(10,729)				(11,427)
Purchase of property, plant and equipment		10			(34,079)		(35,523)				(84,507)
Loans advanced to joint ventures					(8,922)		(13,910)				(12,602)
Disposal proceeds received - exit from Pigmeat					-		3,308				3,308
Insurance proceeds received - exit from Pigmeat					-		5,820				8,820
Proceeds from sale of property, plant and equipment					-		164				7,629
Net cash used in investing activities					(32,431)		(51,233)				(303,757)
Cash flows from financing activities
Proceeds from issue of ordinary shares		13			-		105				360
Purchase of treasury shares		13			-		(1,407)				(1,665)
Increase in borrowings					54,331		50,348				188,090
Finance lease principal payments					(432)		(532)				(934)
Dividends paid to Company's shareholders		8			(11,016)		(10,494)				(18,502)
Capital grants received					47		1,366				9,655
Net cash from financing activities					42,930		39,386				177,004
Net decrease in cash and cash equivalents					(42,695)		(34,106)				(29,522)
Cash and cash equivalents at the beginning of the period					132,572		159,819				159,819
Effects of exchange rate changes on cash and cash equivalents					(421)		(1,975)				2,275
Cash and cash equivalents at the end of the period					89,456		123,738				132,572
Reconciliation of net cash flow to movement in net debt				Half year				Half year			Year
				2009				2008			2008
				€'000				€'000			€'000
Net decrease in cash and cash equivalents				(42,695)				(34,106)			(29,522)
Movement in debt financing				(53,899)				(49,816)			(187,156)
				(96,594)				(83,922)			(216,678)
Fair value of interest rate swaps qualifying as fair value hedges				(2,428)				2,067			(5,544)
Exchange translation adjustment on net debt				4,608				5,748			(9,686)
Movement in net debt in the period				(94,414)				(76,107)			(231,908)
Net debt at beginning of period				(452,083)				(220,175)			(220,175)
Net debt at end of period				(546,497)				(296,282)			(452,083)
Net debt comprises:
Borrowings	11			(635,953)				(420,020)			(584,655)
Cash and cash equivalents	11			89,456				123,738			132,572
				(546,497)				(296,282)			(452,083)

  Notes to the condensed financial statements

for the half year ended 4 July 2009

1 Basis of preparation

The figures for the half years ended 4 July 2009 and 28 June 2008 have not been audited by the Group's auditors. The figures for the full year ended 3 January 2009 represent an abbreviated version of the Group's financial statements for that year, which received an unqualified audit report.

These condensed financial statements do not constitute statutory accounts within the meaning of Section 19 of the Companies (Amendment) Act 1986. The statutory accounts for the financial year ended 3 January 2009 were approved by the Board of Directors on 3 March 2009 and contained an unqualified audit report. These financial statements will be filed with the Registrar of Companies by their due date.

The Group condensed interim financial statements for the six months ended 4 July 2009 have been prepared in accordance with the Transparency (Directive 2004/109/EC) Regulations 2007, the related Transparency Rules of the Irish Financial Services Regulatory Authority and with IAS 34, 'Interim Financial Reporting'. The condensed interim financial statements should be read in conjunction with the annual financial statements for the year ended 3 January 2009, which have been prepared in accordance with IFRS.

2 Accounting policies

The methods of computation and accounting policies adopted in the preparation of the Group condensed financial statements are consistent with those applied in the annual report for the year ended 3 January 2009 except for the IFRS' outlined below. The Group's accounting policies are set out in the annual report for the year ended 3 January 2009.

The following standards and interpretations, issued by the IASB and the International Financial Reporting Interpretations Committee ('IFRIC'), are effective for the Group for the first time in the current financial period and have been adopted by the Group:

IFRS 2 (Amendment), 'Share based payment'

IFRS 8, 'Operating segments'

IAS 1 (Revised), 'Presentation of financial statements' 

IAS 23 (Revised), 'Borrowing costs' 

IAS 32 (Amendment), 'Presentation'

IAS 39 (Amendment), 'Financial instruments: recognition and measurement' 

IFRIC 16, 'Hedges of a net investment in a foreign operation' 

Except for IFRS 8, 'Operating segments' adoption of the standards and interpretations above had no significant impact on the results or financial position of the Group during the period.

IFRS 8 replaces IAS 14, 'Segment reporting'. The new standard requires a 'management approach', under which the segment information is presented on the same basis as that used for internal reporting purposes. In addition, the segments are reported in a manner consistent with information provided to the Chief Operating Decision Maker. On adoption of IFRS 8, the number of reportable segments presented by the Group has increased. The measure of segmental performance has changed from Ireland and International to US Cheese and Global Nutritionals, Dairy Ireland, Joint Ventures & Associates and Other. 

3 Segment information

On adoption of IFRS 8, the Group has changed the measure of segmental performance from Ireland and International to US Cheese & Global Nutritionals, Dairy Ireland, Joint Ventures & Associates and Other. These segments align with the Group's internal financial reporting system and the way in which the Chief Operating Decision Maker assesses performance and allocates the Group's resources. A segment manager is responsible for each segment and is directly accountable for the performance of that segment to the Glanbia Executive Committee which acts as the Chief Operating Decision Maker for the Group. 

Each segment derives their revenues as follows: US Cheese & Global Nutritionals earns its revenues from the sale of cheese, whey protein and other nutritional ingredients; Dairy Ireland incorporates the manufacture and sale of a range of dairy products and the sale of feed, fertilizer and other farm inputs; Joint Ventures & Associates revenues mainly include the sale of cheese, whey proteins, dairy consumer products and are reviewed in their totality by the Chief Operating Decision Maker. Other includes Property, a small dairy operation in Mexico and the Pigmeat business which was disposed of in March 2008. 

Comparatives for the 2008 half year and full year have been restated.

Half Year 2009

		US Cheese and Global Nutritionals		Dairy Ireland		JV's and Associates		Other		Group Including JV's and Associates
		€'000		€'000		€'000		€'000		€'000
Total gross segment revenue	(a)	401,847		542,891		148,010		2,851		1,095,599
Inter-segment revenue		(371)		(2,366)		-		-		(2,737)
Segment external revenue		401,476		540,525		148,010		2,851		1,092,862
Segment earnings before interest and tax	(b)	44,942		5,869		6,253		(3,004)		54,060
Segment assets	(c)	619,082		584,221		96,383		29,207		1,328,893

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of €30 million and related party sales between US Cheese & Global Nutritionals and Joint Ventures & Associates of €1 million.

(a) Segment revenue is reconciled to reported external revenue as follows:					€'000
Total gross segment revenue					1,095,599
Inter-segment revenue					(2,737)
Joint ventures & associates revenue					(148,010)
Reported external revenue					944,852
(b) Segment EBIT is reconciled to reported PBT as follows:					€'000
Segment EBIT					54,060
Joint ventures & associates interest and tax					(3,596)
Finance income					2,784
Finance costs					(15,274)
Reported PBT					37,974
(c) Segment assets are reconciled to reported assets as follows:					€'000
Segment assets					1,328,893
Unallocated assets					125,672
Reported assets					1,454,565

  

Half Year 2008

		US Cheese and Global Nutritionals		Dairy Ireland		JV's and Associates		Other		Group Including JV's and Associates
		€'000		€'000		€'000		€'000		€'000
Total gross segment revenue	(a)	395,111		678,432		186,404		39,080		1,299,027
Inter-segment revenue		(320)		(6,126)		-		-		(6,446)
Segment external revenue		394,791		672,306		186,404		39,080		1,292,581
Segment earnings before interest, tax and exceptional items	(b)	29,398		25,712		12,123		1,430		68,663
Exceptional items		-		(2,583)		-		-		(2,583)
Segment earnings before interest and tax		29,398		23,129		12,123		1,430		66,080
Segment assets	(c)	357,488		684,642		90,755		20,859		1,153,744

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of €35 million and related party sales between US Cheese & Global Nutritional and Joint Ventures & Associates of €1.5 million. 

(a) Segment revenue is reconciled to reported external revenue as follows:					€'000
Total gross segment revenue					1,299,027
Inter-segment revenue					(6,446)
Joint ventures & associates revenue					(186,404)
Reported external revenue					1,106,177
(b) Segment EBIT is reconciled to reported PBT as follows:					€'000
Segment EBIT					68,663
Exceptional items					(2,583)
Joint ventures & associates interest and tax					(6,512)
Finance income					2,378
Finance costs					(11,444)
Reported PBT					50,502
(c) Segment assets are reconciled to reported assets as follows:					€'000
Segment assets					1,153,744
Unallocated assets					130,204
Reported assets					1,283,948

Year 2008

		US Cheese and Global Nutritionals		Dairy Ireland		JV's and Associates		Other		Group Including JV's and Associates
		€'000		€'000		€'000		€'000		€'000
Total gross segment revenue	(a)	844,911		1,357,027		370,315		47,391		2,619,644
Inter-segment revenue		(695)		(16,473)		-		-		(17,168)
Segment external revenue		844,216		1,340,554		370,315		47,391		2,602,476
Segment earnings before interest, tax and exceptional items	(b)	83,839		49,660		17,039		555		151,093
Exceptional items		-		(19,303)		(947)		-		(20,250)
Segment earnings before interest and tax		83,839		30,357		16,092		555		130,843
Segment assets	(c)	637,994		534,612		88,421		7,676		1,268,703

Included in external revenue are related party sales between Dairy Ireland and Joint Ventures & Associates of €69.3 million and related party sales between US Cheese & Global Nutritionals and Joint Ventures & Associates of €2.9 million.

(a) Segment revenue is reconciled to reported external revenue as follows:					€'000
Total gross segment revenue					2,619,644
Inter-segment revenue					(17,168)
Joint ventures & associates revenue					(370,315)
Reported external revenue					2,232,161
(b) Segment EBIT is reconciled to reported PBT as follows:					€'000
Segment EBIT					151,093
Exceptional items					(20,250)
Joint ventures & associates interest and tax					(9,733)
Finance income					5,590
Finance costs					(26,695)
Reported PBT					100,005
(c) Segment assets are reconciled to reported assets as follows:					€'000
Segment assets					1,268,703
Unallocated assets					186,266
Reported assets					1,454,969

4 Seasonality

Elements of the business, particularly within Dairy Ireland reflect the seasonal nature of Irish dairying. The increase in working capital for half year 2009 versus year end 2008 of €96.5 million (HY 2008: €61.7 million) was primarily driven by the above seasonal patterns. 

5 Exceptional items

			Half year		Half year		Year
			2009		2008		2008
	Notes		€'000		€'000		€'000
Exit from Pigmeat	(a)		-		(2,583)		(3,332)
Rationalisation costs	(b)		-		-		(15,971)
Joint Venture - deferred tax charge	(c)		-		-		(947)
			-		(2,583)		(20,250)
Exceptional tax credit			-		323		892
Net exceptional item			-		(2,260)		(19,358)

(a) An exceptional charge was incurred on the finalisation of the exit from the Pigmeat business announced in March 2008.

(b) €16.0 million related to a rationalisation programme, primarily redundancy costs, in Dairy Ireland.

(c) An exceptional deferred tax charge of €1.0 million (Group Share) arose in the Group's joint venture, Glanbia Cheese. This related to a UK tax legislation change providing for the withdrawal of industrial buildings allowances.

  

6 Finance income and costs

(a) Finance income
	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Interest income	2,565		2,242		5,164
Interest income on deferred consideration	219		136		426
	2,784		2,378		5,590
(b) Finance costs
	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Interest expense
- Bank borrowings repayable within five years	(9,304)		(9,025)		(21,471)
- Interest cost on deferred consideration	(33)		(228)		(22)
- Finance lease costs	(181)		(155)		(360)
- Interest rate swaps, transfer from equity	(3,582)		154		(477)
- Interest rate swaps, fair value hedges	(342)		(1,539)		(1,295)
- Fair value adjustment of borrowings attributable to interest rate risk	342		1,539		1,295
	(13,100)		(9,254)		(22,330)
Finance cost of preference shares	(2,174)		(2,190)		(4,365)
Total finance costs	(15,274)		(11,444)		(26,695)
Net finance costs	(12,490)		(9,066)		(21,105)

7 Income taxes

The Group's income tax charge of €7.4 million (HY 2008: €9.0 million) has been prepared based on the Group's best estimate of the weighted average tax rate that is expected for the full financial year.

8 Dividends

A final dividend in respect of the year ended 3 January 2009 of 3.76 cents per share was paid during the period. On 25 August 2009, the Directors declared the payment of an interim dividend for 2009 of 2.89 cents per share (2008 interim dividend: 2.75 cents per share). The interim dividend will be reflected in the financial statements for the full year 2009 in line with IAS 10, 'Events after the balance sheet date'.

  

9 Earnings per share

Basic
	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Profit attributable to equity holders of the Company	30,188		40,997		78,399
Weighted average number of ordinary shares in issue	292,989,984		293,252,086		293,018,610
Basic earnings per share (cents per share)	10.30		13.98		26.76

Diluted
	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Weighted average number of ordinary shares in issue	292,989,984		293,252,086		293,018,610
Adjustment for share options	466,550		1,355,427		1,356,809
Adjusted weighted average number of ordinary shares	293,456,534		294,607,513		294,375,419
Diluted earnings per share (cents per share)	10.29		13.92		26.63

Adjusted
	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Profit attributable to equity holders of the Company	30,188		40,997		78,399
Amortisation on intangible assets (net of related tax)	5,997		2,888		7,312
Net exceptional items	-		2,260		19,358
	36,185		46,145		105,069
Adjusted earnings per share (cents per share)	12.35		15.74		35.86
Diluted adjusted earnings per share (cents per share)	12.33		15.66		35.69

10 Property, plant & equipment and intangible assets

During the six month period to 4 July 2009 the Group spent €34.1 million (HY 2008: €35.5 million) on additions to property, plant & equipment and intangible assets. The Group did not dispose of any property, plant & equipment or intangible assets during the period (HY 2008: €1.1 million with related proceeds of €3.7 million). At 4 July 2009 the Group had entered into contractual commitments for the acquisition of property, plant and equipment amounting to €8.1 million (HY 2008: €14.3 million).

  

11 Net debt 

	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Borrowings due within one year	890		886		15,281
Borrowings due after one year	635,063		419,134		569,374
Less:
Cash and cash equivalents	(89,456)		(123,738)		(132,572)
	546,497		296,282		452,083

The increase in net debt of €250.2 million from half year 2008 was primarily driven by the Group's acquisition of Optimum Nutrition Inc on 22 August 2008.

The Group has the following undrawn borrowing facilities:	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
- Expiring within one year	46,489		16,326		31,803
- Expiring beyond one year	100,585		239,921		67,302
	147,074		256,247		99,105

12 Provisions for other liabilities & charges

	Restructuring		UK pension		Other		Total
	€'000		€'000		€'000		€'000
At 3 January 2009	19,437		1,334		7,617		28,388
Provided in the period	98		-		34		132
Utilised in the period	(11,092)		(187)		(1,286)		(12,565)
Exchange differences	-		154		215		369
At 4 July 2009	8,443		1,301		6,580		16,324
Non-current	-		-		3,647		3,647
Current	8,443		1,301		2,933		12,677
	8,443		1,301		6,580		16,324

(a) The restructuring provision relates to the rationalisation programme Glanbia is currently undertaking. The provision which relates mainly to redundancy is expected to be fully utilised during 2009.

(b) The UK pension provision relates to administration and certain costs associated with pension schemes relating to businesses disposed of in prior years. This provision is expected to be fully utilised during 2009.

(c) Included in 'Other' above are provisions in respect of property lease commitments, deferred consideration in respect of recent acquisitions, insurance and certain legal claims pending against the Group. It is expected that €2.9 million of this provision will be utilised during 2009, with the balance being utilised over a further five year period. Due to the nature of these items, there is some uncertainty around the amount and timing of payments.

  

13 Reconciliation of changes in equity 

Half Year 2009

					Other Reserves
	Share		Capital and merger		Currency		Fair value		Retained		Minority
	capital		reserves		reserve		reserve		earnings		interest		Total
	€'000		€'000		€'000		€'000		€'000		€'000		€'000
Balance at 3 January 2009	97,320		117,586		(5,230)		(9,474)		19,707		8,010		227,919
Currency translation differences	-		-		4,887		-		-		-		4,887
Actuarial loss - defined benefit schemes	-		-		-		-		(41,141)		-		(41,141)
Deferred tax on actuarial loss	-		-		-		-		4,496		-		4,496
Revaluation of interest rate swaps - loss in period	-		-		-		(2,250)		-		-		(2,250)
Foreign exchange contracts - gain in period	-		-		-		4,709		-		-		4,709
Transfers to income statement
- Foreign exchange contracts - loss in period	-		-		-		(1,130)		-		-		(1,130)
- Forward commodity contracts - gain in period	-		-		-		808		-		-		808
- Interest rate swaps - gain in period	-		-		-		3,582		-		-		3,582
Revaluation of forward commodity contracts - loss in period	-		-		-		(714)		-		-		(714)
Revaluation of available for sale investments - loss in period	-		-		-		(2,749)		-		-		(2,749)
Deferred tax on fair value adjustments	-		-		-		183		-		-		183
Profit for the period	-		-		-		-		30,188		369		30,557
Credit to share options	-		(203)		-		-		-		-		(203)
Dividend paid during the period	-		-		-		-		(11,016)		-		(11,016)
Balance at 4 July 2009	97,320		117,383		(343)		(7,035)		2,234		8,379		217,938

Goodwill previously written off amounting to €93.0 million (2008: €93.0 million) is included in opening and closing retained earnings. 

  

Half Year 2008

					Other Reserves
			Capital
			and
	Share		merger		Currency		Fair value		Retained		Minority
	capital		reserves		reserve		reserve		earnings		interest		Total
	€'000		€'000		€'000		€'000		€'000		€'000		€'000
Balance at 29 December 2007	98,450		116,934		(22,481)		13,456		21,176		7,040		234,575
Currency translation differences	-		-		(7,124)		-		-		-		(7,124)
Actuarial loss - defined benefit schemes	-		-		-		-		(1,252)		-		(1,252)
Deferred tax on actuarial loss	-		-		-		-		(709)		-		(709)
Revaluation of interest rate swaps - gain in period	-		-		-		63		-		-		63
Foreign exchange contracts - gain in period	-		-		-		3,848		-		-		3,848
Transfers to income statement
- Foreign exchange contracts - loss in period	-		-		-		(1,677)		-		-		(1,677)
- Interest rate swaps - loss in period	-		-		-		(154)		-		-		(154)
Revaluation of forward commodity contracts - gain in period	-		-		-		660		-		-		660
Revaluation of available for sale investments - loss in period	-		-		-		(130)		-		-		(130)
Deferred tax on fair value adjustments	-		-		-		(483)		-		-		(483)
Profit for the period	-		-		-		-		40,997		808		41,805
Shares issued	3		-		-		-		-		-		3
Premium on shares issued	102		-		-		-		-		-		102
Shares purchased	(1,407)		-		-		-		-		-		(1,407)
Cost of share options	-		149		-		-		-		-		149
Dividend paid during the period	-		-		-		-		(10,494)		-		(10,494)
Balance at 28 June 2008	97,148		117,083		(29,605)		15,583		49,718		7,848		257,775

Goodwill previously written off amounting to €93.0 million (2007: €93.0 million) is included in opening and closing retained earnings. 

  

14 Changes in estimates and assumptions

The following actuarial assumptions represent the main changes in estimates for the Group during the period. The assumptions have been made in determining the Group's retirement benefit obligation for the half year ended 4 July 2009:

		Half Year 2009					Year 2008
		IRL		UK		IRL			UK
Discount rate		5.60%		6.50%		5.90%			6.60%
Inflation rate		2.00%		3.50%		2.50%			3.10%
Future salary increases		3.00%		4.25%		3.50%			3.85%
Future pension increases		1.50% - 3.50%		3.30%		1.50% - 3.50%			3.00%

The mortality assumptions imply the following life expectancies in years of an active member on retiring at age 65, 20 years from now:

	Half Year 2009				Year 2008
	Irish mortality		UK mortality		Irish mortality		UK mortality
	Rates		rates		rates		rates
Male	21.5		24.0		20.0		24.0
Female	24.2		26.8		22.9		26.8

The mortality assumptions imply the following life expectancies in years of an active member, aged 65, retiring now:

	Half Year 2009				Year 2008
	Irish mortality		UK mortality		Irish mortality		UK mortality
	Rates		rates		rates		rates
Male	19.2		22.9		18.9		22.9
Female	21.9		25.8		21.8		25.8

The financial position of the schemes was as follows:

	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Total market value of assets	317,821		347,593		301,499
Present value of scheme liabilities	(518,159)		(454,535)		(465,909)
Net deficit in schemes	(200,338)		(106,942)		(164,410)

15 Related party transactions

The Company is controlled by Glanbia Co-Operative Society Limited ("the Society") which holds 54.6% of the issued share capital of the Company and is the ultimate parent of the Group.

During the six months to 4 July 2009, sales to related parties amounted to €30.9 million (HY 2008: €44.3 million), purchases from related parties amounted to €156.9 million (HY 2008: €252.7 million) and net balances due from related parties were €11.7 million (HY 2008: €12.7 million owed to related parties). The related party transactions relate primarily to trading between the Company, Southwest Cheese Company LLC, Milk Ventures (UK) Limited and the Society. 

In the opinion of the Directors, there have been no related party transactions, or changes therein, since the year ended 3 January 2009, that have materially affected the Group's financial position or performance during the six months ended 4 July 2009. 

  

16 Contingent liabilities

Bank guarantees, amounting to €8.5 million (HY 2008: €5.3 million) are outstanding as at 4 July 2009, mainly in respect of the payment of EU subsidies. The Group does not expect any material loss to arise from these guarantees.

17 Comparatives 

Certain comparatives have been reclassified to reflect the current period classification.

18 Events after the balance sheet date

There have been no material events subsequent to the end of the interim period 4 July 2009 which require disclosure in this report.

19 Cash generated from operations

	Half year		Half year		Year
	2009		2008		2008
	€'000		€'000		€'000
Profit before taxation	37,974		50,502		100,005
Development costs capitalised	(974)		-		(3,253)
Other movements - impairment charge	-		-		620
Non-cash exceptional - exit from pigmeat	-		954		943
Share of results of associates and joint ventures	(2,657)		(5,611)		(6,359)
Depreciation	15,903		13,151		25,789
Amortisation	6,854		3,301		8,358
(Credit)/cost of share options	(203)		149		827
Difference between pension charge and cash contributions	(7,494)		(7,064)		(12,483)
Gain on disposal of property, plant and equipment	-		(2,556)		(5,319)
Interest income	(2,784)		(2,378)		(5,590)
Interest expense	15,274		11,444		26,695
Amortisation of government grants received	(626)		(132)		(600)
Cash generated from operations before changes in working capital	61,267		61,760		129,633
Change in net working capital
- Decrease/(increase) in inventory	37,865		(61,126)		(20,888)
- (Increase)/decrease in short term receivables	(58,236)		(90,741)		27,088
- (Decrease)/increase in short term liabilities	(63,505)		93,080		(1,481)
- (Decrease)/increase in provisions	(12,596)		(2,909)		12,594
Cash (absorbed by)/generated from operations	(35,205)		64		146,946

20 Information

Copies of this interim report are available for download from the Group's website at www.glanbia.com.

ENDIR EANPSALFNEFE

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Related Shares:

Glanbia