10th Jul 2007 07:00
Glanbia PLC10 July 2007 2007 GLANBIA INTERIM TRADING STATEMENT POSITIVE FIRST HALF PERFORMANCE ON TARGET TO DELIVER STRONG DOUBLE DIGIT GROWTH FOR THE FULL YEAR 10 July 2007 - Glanbia plc, the international dairy foods and nutritionalingredients Group, today issues this trading statement for the six months ending30 June 2007. Interim Results are due to be announced on Wednesday, 29 August2007. Overall, Glanbia had a positive first half performance with good growth inrevenues, profits and margins. As a consequence the Group expects earnings pershare will show an increase of approximately 20%, compared with a flat firsthalf performance in 2006. There were a number of contributing factors, asGlanbia continues to benefit from its spread of businesses and ongoing executionof its growth strategy, against a backdrop of positive trends in world dairymarkets. For the first six months of 2007, Consumer Foods and Agribusiness and Propertyperformed broadly in line with expectations, even though markets remaincompetitive. Food Ingredients, the Group's largest division, delivered a strongperformance. While Food Ingredients Ireland delivered an improved performancewhen compared with a difficult first half in 2006, the key performance driversfor this division were Food Ingredients USA and Nutritionals, including a fullsix month contribution from Seltzer Companies Inc., the 2006 Nutritionalsacquisition. Conversely, the dramatic increases in raw material prices as a result of strongglobal dairy markets led to short term trading pressures in the Group's keyinternational joint ventures in the UK, USA and Nigeria, as these businessesexperienced an inevitable time lag in recovering or redressing these costincreases. While this is being actively managed, these operations encounteredchallenging trading conditions, which will be reflected in disappointing firsthalf performances. Operationally and in terms of market development thesebusinesses are performing well. Glanbia expects the Group's full year performance in line with the upper end ofmarket expectations, despite a cautious outlook for international joint venturesfor the second half. The Group will give a full update on the expectations for2007 at the announcement of the Interim Results. John Moloney, Group Managing Director, commented 'Glanbia had a very satisfactory performance in the first six months and expects to deliver earnings per sharegrowth of approximately 20% for the first half of 2007. For the full year, thereare some short term factors in our international joint ventures that cause us tobe a bit cautious at this time. However, we expect to deliver strongly in termsof profits, margins and earnings and we are confident that the Group is well ontarget to deliver strong double digit growth for 2007 as a whole. Overall, I ampleased that the Group's growth strategy and spread of business is deliveringand the outlook is positive for sustained high growth going forward.' For further information contact Glanbia plc +353 56 777 2200Geoff Meagher, Deputy Group Managing Director/Group Finance DirectorSiobhan Talbot, Deputy Group Finance DirectorGeraldine Kearney, Corporate Communications Director + 353 87 231 9430 Hogarth Partnership UK +44 207 357 9477John Olsen This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Glanbia