6th Sep 2006 07:03
Glanbia PLC06 September 2006 2006 Interim Results RESULTS IN LINE WITH THE FIRST HALF OF 2005 GOOD PROGRESS IN INTERNATIONAL JOINT VENTURES SIGNIFICANT NUTRITIONALS ACQUISITION 6 September 2006 - Glanbia plc, the international dairy foods and nutritionalingredients Group, announces its interim results for the six months ended 1 July2006. 2006 Interim Results Summary Group revenue, profit after tax and adjusted earnings per share in the firsthalf of 2006 were similar to the same period last year. H1 2006 H1 2005 ChangeRevenue €922.8 m €926.1 m SimilarOperating profit pre exceptional €36.4 m €38.3 m Down 5%Operating margin pre exceptional 3.9% 4.1% Down 20 bpsNet financing costs pre exceptional €6.5 m €7.7 m Improved 15%Share of results of joint ventures andassociates €0.3 m €0.04 m ImprovedProfit before tax pre exceptional €30.2 m €30.6 m SimilarProfit after tax pre exceptional €26.9 m €26.7 m SimilarExceptional costs (1) - €4.2 m See noteEarnings per share 9.12 c 7.66 c Up 19%Adjusted earnings per share 9.12 c 9.10 c SimilarDividend per share 2.38 c 2.27 c Up 5%Net debt €301.2 m €286.6 m Up 5% (1) Exceptional costs in H1 2005 include €6.3 million rationalisation costs at the Consumer Foods division, €5.3 million cancellation cost of $100 million preferred securities, offset by a tax credit of €7.4 million relating to a prior business disposal. John Moloney, Group Managing Director, said: "Undoubtedly these are challenging times for Irish Food Ingredients given themagnitude and timing of the impact of EU Mid Term Review (MTR) on dairy markets.However, all other aspects of the Group performed satisfactorily including astrong performance from the newly formed Property business unit. In what was atough first half, the Group accomplished a performance similar to the first halfof 2005. Since June, there has been little change in the trading environment in Ireland.Operating costs remain a key ongoing focus for management, although previousrationalisation initiatives support an improved performance from Irishoperations in the second half. In the USA, better cheese markets and continuingvolume growth underpins the delivery of a good result for the year overall.International joint ventures are progressing well, with further progress atGlanbia Cheese in the UK and the continued scale up of operations at SouthwestCheese in the USA and Nutricima in Nigeria. As trading currently stands, weexpect to meet market expectations for the full year and we remain on track toachieve double digit growth in 2007. The announcement today of the acquisition of Seltzer Companies, Inc. is animportant step in the delivery of Glanbia's strategic plan and gives the Group a strong platform to develop our Nutritionals business. It also advances theinternational development of the Group into key global growth markets." Announced 6 September 2006 2006 INTERIM STATEMENT Results for the six months ended 1 July 2006 Income Statement In the first half of 2006, revenue decreased €3.3 million to €922.8 million (H12005: €926.1 million). The downturn in performance in the Food Ingredientsdivision, particularly the Irish operations, led to a decrease in overalloperating profit and margins. Operating profit pre exceptional declined €1.9million to €36.4 million (H1 2005: €38.3 million) and the operating margin preexceptional was down 20 basis points to 3.9% (H1 2005: 4.1%). There were noexceptional items in the first half of 2006 (H1 2005: €4.2 million). Net financing costs pre exceptional were down €1.2 million to €6.5 million (H12005: €7.7 million) as the Group continues to benefit from the refinancinginitiatives undertaken in 2005. The Group's share of results of joint ventures and associates amounted to€283,000 (H1 2005: €38,000) with further improvements in performance in GlanbiaCheese, the Group's UK joint venture with Leprino Foods. Profit before tax pre exceptional at €30.2 million was similar to the sameperiod last year (H1 2005: €30.6 million). Taxation pre exceptional amounted to€3.2 million in the first half of this year compared with €3.9 million for thesame period last year. Profit after tax for the period pre exceptional at €26.9million was also comparable to the first half of 2005 (H1 2005: €26.7 million). Earnings per share amounted to 9.12 cent (H1 2005: 7.66 cent per share) andadjusted earnings per share amounted to 9.12 cent (H1 2005: 9.10 cent pershare). Balance sheet and cash flow Group net debt increased seasonally by €85.5 million in the first half to €301.2million. Net cash generated from operating activities, pre movements in workingcapital, was €34.2 million (H1 2005: €29.0 million). Working capital increasedrelative to the 2005 year end reflecting the seasonality of the underlyingbusinesses. Net cash used in investing activities amounted to €25.9 million (H12005: €36.1 million). Group net debt increased by €14.6 million relative to theposition at H1 2005. Dividends The Board is recommending an interim dividend of 2.38 cent per share (H1 2005:2.27 cent per share), representing an increase of 5%. Dividends will be paid on4 October 2006 to shareholders on the register as at 15 September 2006, therecord date. Irish dividend withholding tax will be deducted at the standardrate, where appropriate. Operations review The Group has operations in Ireland, Europe and the USA, with internationaljoint ventures in the UK, USA and Nigeria. Glanbia has three divisions -Agribusiness and Property, Consumer Foods and Food Ingredients and Nutritionals. AGRIBUSINESS AND PROPERTY This division has two business units. Agribusiness is the key linkage with theGroup's Irish farmer supply base. The Property business unit has responsibilityfor the maximisation of value from the Group's property portfolio. In the firsthalf, revenue for Agribusiness and Property was up €23.3 million to €165.6million (H1 2005: €142.3 million). Operating profit pre exceptional was up €7.9million to €15.9 million (H1 2005: €8.0 million) driven mainly by strongproperty disposals in the first half. Operating margins, excluding property,were 5.8% (H1 2005: 5.2%). Agribusiness had a solid first half in what continues to be a competitiveenvironment, as farmer purchasing patterns are impacted by EU reforms. Thisperformance reflects the benefits of recent rationalisation initiatives combinedwith a new branch format, ongoing technology and systems upgrades and a widercustomer offering. The outlook for Agribusiness in the second half is expectedto be satisfactory, in line with the normal seasonal trading pattern for thisbusiness. The role of the Property business unit, newly formed in 2005, is to develop andmaximise the value of the Group's property assets. A significant number oflocations for potential sale or development have been identified and thisbusiness is building up a pipeline of transactions for completion over themedium term. In the first half of 2006 most of the planned transactions for theyear were completed, delivering a strong result for the six months. Only alimited number of small transactions are forecast to be completed in the secondhalf of the year. CONSUMER FOODS This division incorporates liquid milk, chilled foods and pig meat. It delivereda steady performance overall in the first half, with a better performance fromliquid milk and chilled foods offset by a decline in the performance of thepigmeat operations. Revenue for Consumer Foods increased €9.8 million to €252.3million (H1 2005: €242.5 million). Operating profit increased to €8.5 million(H1 2005: €8.2 million) and operating margin at 3.4% was in line with H1 2005. Liquid milk and chilled foods: This business had a reasonable performance in thefirst half. The liquid milk operations benefited from the integration of the CMPbrands which were acquired in the first half of 2005. The Group invested heavilyin rationalisation, marketing and new product development in chilled foods in2005 to improve both competitiveness and market share and these initiativesaided performance in the first half. The trading environment however remainshighly competitive in line with the retail sector in Ireland. The outlook forliquid milk and chilled foods in the second half is for a solid performance withcontinued investment planned to support our brand positions. Pig meat: Overall performance declined as a result of market weakness in certainsegments. Some recovery is anticipated in this business in the second half asmarkets are expected to improve in addition to the normal seasonal performanceuplift. FOOD INGREDIENTS AND NUTRITIONALS This division has three business units. These are Food Ingredients Ireland whichproduces cheese, butter, dairy spreads and whey protein ingredients, FoodIngredients USA which produces cheese and whey and Glanbia Nutritionals. GlanbiaNutritionals is developing as a leading provider of science-based nutritionalfood solutions and products including a wide range of speciality ingredients foruse in ready-to-drink and powdered beverages, nutritional bars, dairy products,snacks, and confectionary applications. In the first half, revenue from thisdivision declined €36.4 million to €504.9 million (H1 2005: €541.3 million).Operating profit declined €10.0 million to €12.1 million (H1 2005: €22.1million) and the operating margin declined to 2.4% (H1 2005: 4.1%), mainlyreflecting the sharp downturn in the performance of the Irish Food Ingredientsoperations. Ireland: The present EU dairy reform is in year three of a four year MTRprogramme that reduces industry supports. In the first half of 2006 the combinedeffects of lower world dairy markets and reduced EU dairy supports significantlyreduced product selling prices and a time lag in adjusting milk prices resultedin lower margins. Recent milk price reductions combined with improved costcompetitiveness are expected to result in a second half performance that is inline with the second half of 2005. USA: Production volumes increased further in the first half of 2006 but thebenefit of this was more than offset by the impact of lower market prices forcheese in the USA. An improvement in cheese markets with continuing volumegrowth will underpin a good second half performance for Food Ingredients USA. Nutritionals: This business delivered good revenue growth, mainly in new productdevelopment and acquired businesses, both of which performed well. In the firsthalf the Group continued to invest heavily in people and skills development. Agood performance is expected in this business in the second half. INTERNATIONAL JOINT VENTURES Glanbia's strategy is to build international relevance in cheese, nutritionalingredients and selected consumer foods and this incorporates a number ofstrategically significant joint ventures producing cheese, whey and milkproducts. These investments performed as planned in the first half of the yearwith the performance of Nutricima in Nigeria and Southwest Cheese in the USAreflecting the early stages of development of these businesses. UK: Glanbia Cheese, a joint venture with Leprino Foods, produces mozzarellacheese for the European market. This business continues to steadily improveprofitability and margins and is expected to perform well for the full year. Nigeria: Nutricima is a joint venture with PZ Cussons plc which manufactures andmarkets branded dairy based consumer products for the Nigerian market. Thisbusiness is performing to expectations with strong revenue growth and furtherexpansion is planned. USA: The commissioning of Southwest Cheese (SWC), the Group's joint venture withour main partners Dairy Farmers of America and Select Milk Producers Inc., issubstantially complete and the ongoing scale up of production is progressing toplan. Outlook Since June, there has been little change in the trading environment in Ireland.Operating costs remain a key ongoing focus for management, although previousrationalisation initiatives support an improved performance from Irishoperations in the second half. In the USA, better cheese markets and continuingvolume growth underpins the delivery of a good result for the year overall.International joint ventures are progressing well, with further progress atGlanbia Cheese in the UK and the continued scale up of operations at SouthwestCheese in the USA and Nutricima in Nigeria. As trading currently stands, weexpect to meet market expectations for the full year and we remain on track toachieve double digit growth in 2007. The announcement today of the acquisition of Seltzer Companies, Inc. is animportant step in the delivery of Glanbia's strategic plan and gives the Group astrong platform to develop our Nutritionals business. It also advances theinternational development of the Group into key global growth markets." CONSOLIDATED INCOME STATEMENTfor the half year ended 1 July 2006 Half year 2006 Half year 2005 Year 2005 Pre- Pre- Excep- Total Pre- Except- Total excep- Except- Total excep- tional (as (as excep- tional (as (as tional tional tional restated) restated) tional restated) restated) Notes •'000 •'000 •'000 •'000 •'000 •'000 •'000 •'000 •'000 Revenue 3 922,793 - 922,793 926,127 - 926,127 1,830,012 - 1,830,012 ------- ------- ------- ------- ------- ------- ------- ------- ------- Operating profit 36,406 - 36,406 38,328 (6,338) 31,990 80,569 (5,041) 75,528 Finance income 5 2,125 - 2,125 2,144 - 2,144 4,209 - 4,209Finance costs 5 (8,662) - (8,662) (9,869) (5,304) (15,173) (16,995) (5,304) (22,299)Share of resultsof joint venturesand associates 283 - 283 38 - 38 932 - 932 ------- ------- ------- ------- ------- ------- ------- ------- ------- Profit beforetaxation 30,152 - 30,152 30,641 (11,642) 18,999 68,715 (10,345) 58,370Income taxes (3,226) - (3,226) (3,947) 7,454 3,507 (7,592) 6,935 (657) ------- ------- ------- ------- ------- ------- ------- ------- ------- Profit for theperiod 26,926 - 26,926 26,694 (4,188) 22,506 61,123 (3,410) 57,713 ------- ------- ------- ------- ------- ------- ------- ------- ------- Attributable to:Equity holdersof the Parent 26,725 22,293 57,396Equity minorityinterest 201 213 317 ------- ------- ------- 26,926 22,506 57,713 ------- ------- ------- Earnings per share (cent) - Basic 9.12 7.66 19.69 - Diluted 9.11 7.62 19.62 CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEfor the half year ended 1 July 2006 Half year Half year Year Notes 2006 2005 2005 (as restated)(as restated) •'000 •'000 •'000 Actuarial gain/(loss) - definedbenefit schemes 42,536 (25,020) (42,303)Deferred tax on pension gain/(loss) (4,796) - 4,054Currency translation differences (943) (9,494) (3,042)Prior period restatement - Amendmentof IAS 21 2 - 3,907 3,931Fair value adjustments 9 4,557 (269) (3,465) ------- ------- ------- Net income/(expense) recogniseddirectly in equity 41,354 (30,876) (40,825)Profit for the period 26,926 22,506 57,713 ------- ------- ------- Total recognised income for the period 68,280 (8,370) 16,888 ------- ------- ------- Attributable to:Equity holders of the Parent 68,079 (8,583) 16,571Non-equity minority interest - - -Equity minority interest 201 213 317 ------- ------- ------- 68,280 (8,370) 16,888 ------- ------- ------- CONSOLIDATED BALANCE SHEETas at 1 July 2006 Half year Half year Year Notes 2006 2005 2005 (as restated) (as restated) •'000 •'000 •'000 ASSETSNon-current assetsProperty, plant and equipment 337,597 322,055 332,003Intangible assets 58,330 44,790 57,963Investments in associates 11,066 10,839 11,090Investments in joint ventures 58,107 50,846 59,832Available for sale investments 29,452 32,762 29,511Trade and other receivables 58,220 55,886 56,874Derivative financial instruments 2,730 435 1,825Deferred tax assets 11,073 12,299 15,869 ------- ------- ------- 566,575 529,912 564,967 ------- ------- -------Current assetsInventories 157,619 141,572 144,250Trade and other receivables 237,203 247,732 143,610Derivative financial 5,463 1,359 1,125instrumentsCash and cash equivalents 8 33,183 30,438 104,405 ------- ------- ------- 433,468 421,101 393,390 ------- ------- ------- Total assets 1,000,043 951,013 958,357 ------- ------- ------- EQUITYIssued capital and reservesattributable to equity holders of the ParentShare capital 98,309 95,208 97,964Other reserves 9 123,885 115,033 120,990Retained earnings 10 (45,756) (116,457) (101,535) ------- ------- ------- 176,438 93,784 117,419Equity minority interest 6,500 6,298 6,299 ------- ------- ------- 182,938 100,082 123,718 ------- ------- ------- LIABILITIESNon-current liabilitiesBorrowings 8 333,392 316,724 319,727Deferred tax liabilities 34,104 33,007 34,471Retirement benefit obligations 120,124 151,696 165,016Provisions for otherliabilities and charges 6,616 6,389 6,072Capital grants 14,382 14,459 14,855 ------- ------- ------- 508,618 522,275 540,141 ------- ------- -------Current liabilitiesBorrowings 8 986 324 330Provisions for other 2,357 9,075 8,433liabilities and chargesTrade and other payables 295,993 310,921 278,583Current tax liabilities 7,416 4,966 4,605Derivative financial 1,735 3,370 2,547instruments ------- ------- ------- 308,487 328,656 294,498 ------- ------- -------Total liabilities 817,105 850,931 834,639 ------- ------- ------- Total equity and liabilities 1,000,043 951,013 958,357 ------- ------- ------- CONSOLIDATED CASH FLOW STATEMENTfor the half year ended 1 July 2006 Half year Half year Year Notes 2006 2005 2005 •'000 •'000 •'000 Cash flows from operatingactivitiesCash (absorbed by)/generatedfrom operations 11 (51,169) 50,286 162,905Interest received 301 142 670Interest paid (8,837) (15,543) (23,177)Tax refunded/(paid) 415 292 (3,777) ------- ------- ------- Net cash from operating (59,290) 35,177 136,621activities ------- ------- ------- Cash flows from investing activitiesAcquisition of subsidiary, net of (811) (10,050) (19,366)cash acquiredPurchase of property, plant and equipment (28,112) (24,304) (46,979)Purchase of available for saleinvestments (2,667) (5,081) (5,214)Disposal of subsidiary, net of cash 812 835 (147)disposedDisposal of investments 4,147 - 14,394Proceeds from sale of property,plant and equipment 716 2,535 4,418 ------- ------- ------- Net cash used in investingactivities (25,915) (36,065) (52,894) ------- ------- ------- Cash flows from financing activitiesProceeds from issue of ordinary shares 190 - 731Sharesave scheme - receipt fromtrustees - - 2,191Drawdown/(repayment) of 17,329 (12,293) (20,242)borrowingsFinance lease principaldrawdowns/(payments) 7,809 (448) (519)Dividends paid to Company'sshareholders (9,499) (8,989) (15,612)Repayment of minority interest - - (7)Capital grants received - - 772 ------- ------- ------- Net cash used in financing activities 15,829 (21,730) (32,686) ------- ------- ------- Net (decrease)/increase in cash andcash equivalents (69,376) (22,618) 51,041 Cash and cash equivalents atthe beginning of the period 104,405 51,625 51,625Effects of exchange rate changeson cash and cash equivalents (1,846) 1,431 1,739 ------- ------- ------- Cash and cash equivalents at the 33,183 30,438 104,405end of the period ------- ------- ------- NOTES TO THE INTERIMS FINANCIAL STATEMENTSfor the half year ended 1 July 2006 1 Basis of preparation This condensed interim financial information for the half year ended 1 July 2006has been prepared in accordance with IAS 34, 'Interim Financial Reporting'. Thecondensed interim financial report should be read in conjunction with the annualfinancial statements for the year ended 31 December 2005. The figures for the half years ended 1 July 2006 and 2 July 2005 have not beenaudited. The figures for the full year ended 31 December 2005 represent anabbreviated version of the Group's financial statements for that year, whichreceived an unqualified audit report. 2 Accounting policies The accounting policies adopted are consistent with those adopted in thepreparation of the annual financial statements for the year ended 31 December2005 and are as described therein, except as outlined below. The Group has considered all amendments to current standards and interpretationstogether with all new standards and interpretations and have identified thefollowing changes that are applicable to the Group: The Group has adopted the amendment to IAS 21 'Net Investment in a ForeignOperation', from 1 January 2006. The adoption of this amendment requires thatall foreign exchange gains and losses that form part of the net investment in aforeign operation, including loans between fellow subsidiaries, will berecognised directly in reserves on consolidation. Prior period comparativefigures have been restated to reflect the impact of this change. The Group has also adopted IFRIC Interpretation 4 (Determining whether anArrangement contains a Lease) and accordingly, from 1 January 2006, hascapitalised certain arrangements as finance leases. 3 Segment information At 1 July 2006 the Group is organised into three main business segments: - Consumer Foods - Food Ingredients and Nutritionals - Agribusiness and Property Half year Half year Year 2006 2005 2005 •'000 •'000 •'000 Revenue by business segment Consumer Foods 252,282 242,523 493,582Food Ingredients and Nutritionals 504,896 541,321 1,107,288Agribusiness and Property 165,615 142,283 229,142 ------- ------- ------- 922,793 926,127 1,830,012 ------- ------- ------- Pre-exceptional operating profit by businesssegment Consumer Foods 8,470 8,208 27,139Food Ingredients and Nutritionals 12,079 22,094 42,746Agribusiness and Property 15,857 8,026 10,684 ------- ------- ------- 36,406 38,328 80,569 ------- ------- ------- 4 Exceptional items Half year Half year Year Notes 2006 2005 2005 (as restated) (as restated) •'000 •'000 •'000 (Loss) on sale or termination ofoperations (a) - - (331)Restructuring cost (b) - (6,338) (15,669)Profit on sale of quoted (c) - 10,959investments ------- ------- ------- - (6,338) (5,041) Finance cost - cancellation ofpreferred securities (note 5) - (5,304) (5,304) Income taxes (d) - 7,454 6,935 ------- ------- ------- - (4,188) (3,410) ------- ------- ------- (a) This represents the revision of losses arising in prior years ondisposals, restructuring and termination of operations. (b) The restructuring cost in 2005 relates to costs of rationalisationprogrammes carried out mainly in the Consumer Foods and Food Ingredientsbusiness units in Ireland. (c) During 2005, the Group benefited from the exchange of shares held inIrish Agricultural Wholesale Society Limited for shares in IAWS Group plc. Theprofit arises from the subsequent sale of these shares. (d) A taxation benefit arising from the disposal of certain US operations inprior years, which previously had not been recognised in the financialstatements, was finalised during 2005. This gave rise to a gain, which by virtueof its scale and nature, was separately disclosed as a non-recurring exceptionalitem in the financial statements. 5 Finance income and costs (a) Finance income Half year Half year Year 2006 2005 2005 •'000 •'000 •'000 Interest income (i) 2,125 2,144 4,209 ------- ------- ------- (b) Finance costs - pre-exceptional Half year Half year Year 2006 2005 2005 •'000 •'000 •'000 Interest expense- Bank borrowings repayable within five years (6,695) (4,944) (10,291)- Bank borrowings repayable after five years - - -- Finance leases (147) (34) (109) ------- ------- ------- (6,842) (4,978) (10,400) Finance cost of preferredsecurities and preference shares (1,820) (4,891) (6,595) ------- ------- ------- Total finance costs - pre-exceptional (8,662) (9,869) (16,995) ------- ------- ------- Finance costs - exceptionalCancellation of preferred securities (ii) - (5,304) (5,304) ------- ------- ------- Total finance costs (8,662) (15,173) (22,299) ------- ------- ------- (i) Interest income consists mainly of interest on a Stg£35 millionsubordinated secured loan note granted by The Cheese Company Holdings Limited in2004, representing part proceeds on the sale by the Group of a 75% interest inits UK hard cheese business. (ii) On 15 June 2005 the Group prepaid the US$100 million 7.99% cumulativeguaranteed preferred securities, giving rise to a cost of €5.3 million, whichhas been disclosed as an exceptional item. 6 Dividends A final dividend in respect of the year ended 31 December 2005 of 3.24 cent pershare was paid during the period. On 5 September 2006, the Directors approvedthe payment of an interim dividend for 2006 of 2.38 cent per share (2005 interimdividend: 2.27 cent per share). This interim dividend will be reflected in thefinancial statements for the full year 2006 in line with IAS 10. 7 Earnings per share Half year Half year Year 2006 2005 2005 (as restated) (as restated) •'000 •'000 •'000Basic Profit attributable toequity holders of the Company 26,725 22,293 57,396 --------- --------- --------- Weighted average number ofordinary shares in issue 292,943,460 290,911,646 291,469,902 --------- --------- --------- Basic earnings per share(cent per share) 9.12 7.66 19.69 --------- --------- --------- Diluted Weighted average number ofordinary shares in issue 292,943,460 290,911,646 291,469,902Adjustments for share options 493,424 1,776,440 1,134,139 --------- --------- --------- Adjusted weighted averagenumber of ordinary shares 293,436,884 292,688,086 292,604,041 --------- --------- --------- Diluted earnings per share 9.11 7.62 19.62(cent per share) --------- --------- --------- Adjusted Profit attributable to equity holdersof the Company 26,725 22,293 57,396Exceptional items - 4,188 3,410 --------- --------- --------- 26,725 26,481 60,806 --------- --------- --------- Adjusted earnings per share (centper share) 9.12 9.10 20.86 --------- --------- --------- Diluted adjusted earnings per share(cent per share) 9.11 9.05 20.78 --------- --------- --------- 8 Borrowings Half year Half year Year 2006 2005 2005 •'000 •'000 •'000 Borrowings due within one year 986 324 330Borrowings due after one year 333,392 316,724 319,727Less:Cash and cash equivalents (33,183) (30,438) (104,405) ------- ------- ------- Net Group borrowings 301,195 286,610 215,652 ------- ------- ------- 9 Other reserves Capital and mergers Currency Fair value reserves reserve reserves Total •'000 •'000 •'000 •'000 Balance at 1 January 2006 116,250 (1,335) 2,144 117,059 Amendment to IAS 21 (note 2) - 3,931 - 3,931 ------- ------- ------- ------- Restated balance at 1 January 2006 116,250 2,596 2,144 120,990 Translation differences on foreigncurrency net investments - (1,756) - (1,756)Gains on interest rate swaps - - 2,246 2,246Foreign exchange contracts - gain in - - 3,375 3,375periodTransfers to income statement - Foreign exchange contracts - - (285) (285) - Available for sale investments - - 6 6Revaluation of forward commodity - - (146) (146)contractsDeferred tax on fair value - - (639) (639)adjustmentsCost of share options 123 - - 123Discount on own shares vested (29) - - (29) ------- ------- ------- ------- Balance at 1 July 2006 116,344 840 6,701 123,885 ------- ------- ------- ------- 10 Retained earnings Retained Goodwill earnings reserve Total •'000 •'000 •'000 Balance at 1 January 2006 (2,979) (94,625) (97,604) Currency translation differences - Amendment to IAS 21 (note 2) (3,931) - (3,931) ------- ------- ------- Restated balance at 1 January 2006 (6,910) (94,625) (101,535) Actuarial gain - defined benefit schemes 42,536 - 42,536Deferred tax on pension gain (4,796) - (4,796)Currency translation differences 813 - 813 ------- ------- -------Net income recognised directly in equity 38,553 - 38,553Profit for the period 26,725 - 26,725 ------- ------- ------- Total recognised income for the period 65,278 - 65,278 Dividends paid in the period (9,499) - (9,499) ------- ------- ------- Balance at 1 July 2006 48,869 (94,625) (45,756) ------- ------- ------- 11 Cash generated Half year Half year Year 2006 2005 2005 (as restated) (as restated) •'000 •'000 •'000 Profit for the period 26,926 22,506 57,713 Non-cash restructuring costs - 1,364 2,172Share of results of joint venturesand associates (283) (38) (932)Income taxes 3,226 (3,507) 657Depreciation 13,122 12,884 23,518Amortisation 1,788 1,702 3,313Cost of share options 123 - 161Exchange losses 66 (2,074) 196Gain on disposal of investments (1,538) - (10,959)Gain on disposal of property,plant and equipment (7,128) (915) (2,509)Interest income (2,125) (2,144) (4,209)Interest expense 8,662 15,173 22,299Amortisation of government grantsreceived (471) (817) (1,424) ------- ------- ------- Net profit before changes inworking capital 42,368 44,134 89,996Change in net working capital(Increase) in inventory (15,379) (5,016) (5,501)(Increase)/decrease in short termreceivables (91,792) (71,192) 35,419Increase in short term 19,710 81,718 35,849liabilities(Decrease)/increase in provisions (6,076) 642 7,142 ------- ------- ------- Cash (absorbed by)/generated fromoperations (51,169) 50,286 162,905 ------- ------- ------- A full copy of this document is available on www.glanbia.com For further information contact Glanbia plc +353 56 777 2200 Geoff Meagher, Deputy Group Managing Director/Group Finance Director Siobhan Talbot, Deputy Group Finance Director Geraldine Kearney, Corporate Communications + 353 87 231 9430 Hogarth Partnership UK +44 207 357 9477 John Olsen This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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