Interim Results
Glanbia PLC
06 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 nutritional
ingredients Group, announces its interim results for the six months ended 1 July
2006.
2006 Interim Results Summary
Group revenue, profit after tax and adjusted earnings per share in the first
half of 2006 were similar to the same period last year.
H1 2006 H1 2005 Change
Revenue €922.8 m €926.1 m Similar
Operating profit pre exceptional €36.4 m €38.3 m Down 5%
Operating margin pre exceptional 3.9% 4.1% Down 20 bps
Net financing costs pre exceptional €6.5 m €7.7 m Improved 15%
Share of results of joint ventures and
associates €0.3 m €0.04 m Improved
Profit before tax pre exceptional €30.2 m €30.6 m Similar
Profit after tax pre exceptional €26.9 m €26.7 m Similar
Exceptional costs (1) - €4.2 m See note
Earnings per share 9.12 c 7.66 c Up 19%
Adjusted earnings per share 9.12 c 9.10 c Similar
Dividend 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 the
magnitude and timing of the impact of EU Mid Term Review (MTR) on dairy markets.
However, all other aspects of the Group performed satisfactorily including a
strong performance from the newly formed Property business unit. In what was a
tough first half, the Group accomplished a performance similar to the first half
of 2005.
Since June, there has been little change in the trading environment in Ireland.
Operating costs remain a key ongoing focus for management, although previous
rationalisation initiatives support an improved performance from Irish
operations in the second half. In the USA, better cheese markets and continuing
volume growth underpins the delivery of a good result for the year overall.
International joint ventures are progressing well, with further progress at
Glanbia Cheese in the UK and the continued scale up of operations at Southwest
Cheese in the USA and Nutricima in Nigeria. As trading currently stands, we
expect to meet market expectations for the full year and we remain on track to
achieve double digit growth in 2007.
The announcement today of the acquisition of Seltzer Companies, Inc. is an
important step in the delivery of Glanbia's strategic plan and gives the Group
a strong platform to develop our Nutritionals business. It also advances the
international 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 (H1
2005: €926.1 million). The downturn in performance in the Food Ingredients
division, particularly the Irish operations, led to a decrease in overall
operating profit and margins. Operating profit pre exceptional declined €1.9
million to €36.4 million (H1 2005: €38.3 million) and the operating margin pre
exceptional was down 20 basis points to 3.9% (H1 2005: 4.1%). There were no
exceptional 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 (H1
2005: €7.7 million) as the Group continues to benefit from the refinancing
initiatives 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 Glanbia
Cheese, the Group's UK joint venture with Leprino Foods.
Profit before tax pre exceptional at €30.2 million was similar to the same
period 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 the
same period last year. Profit after tax for the period pre exceptional at €26.9
million 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) and
adjusted earnings per share amounted to 9.12 cent (H1 2005: 9.10 cent per
share).
Balance sheet and cash flow
Group net debt increased seasonally by €85.5 million in the first half to €301.2
million. Net cash generated from operating activities, pre movements in working
capital, was €34.2 million (H1 2005: €29.0 million). Working capital increased
relative to the 2005 year end reflecting the seasonality of the underlying
businesses. Net cash used in investing activities amounted to €25.9 million (H1
2005: €36.1 million). Group net debt increased by €14.6 million relative to the
position 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 on
4 October 2006 to shareholders on the register as at 15 September 2006, the
record date. Irish dividend withholding tax will be deducted at the standard
rate, where appropriate.
Operations review
The Group has operations in Ireland, Europe and the USA, with international
joint 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 the
Group's Irish farmer supply base. The Property business unit has responsibility
for the maximisation of value from the Group's property portfolio. In the first
half, revenue for Agribusiness and Property was up €23.3 million to €165.6
million (H1 2005: €142.3 million). Operating profit pre exceptional was up €7.9
million to €15.9 million (H1 2005: €8.0 million) driven mainly by strong
property 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 competitive
environment, as farmer purchasing patterns are impacted by EU reforms. This
performance reflects the benefits of recent rationalisation initiatives combined
with a new branch format, ongoing technology and systems upgrades and a wider
customer offering. The outlook for Agribusiness in the second half is expected
to be satisfactory, in line with the normal seasonal trading pattern for this
business.
The role of the Property business unit, newly formed in 2005, is to develop and
maximise the value of the Group's property assets. A significant number of
locations for potential sale or development have been identified and this
business is building up a pipeline of transactions for completion over the
medium term. In the first half of 2006 most of the planned transactions for the
year were completed, delivering a strong result for the six months. Only a
limited number of small transactions are forecast to be completed in the second
half of the year.
CONSUMER FOODS
This division incorporates liquid milk, chilled foods and pig meat. It delivered
a steady performance overall in the first half, with a better performance from
liquid milk and chilled foods offset by a decline in the performance of the
pigmeat operations. Revenue for Consumer Foods increased €9.8 million to €252.3
million (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 the
first half. The liquid milk operations benefited from the integration of the CMP
brands which were acquired in the first half of 2005. The Group invested heavily
in rationalisation, marketing and new product development in chilled foods in
2005 to improve both competitiveness and market share and these initiatives
aided performance in the first half. The trading environment however remains
highly competitive in line with the retail sector in Ireland. The outlook for
liquid milk and chilled foods in the second half is for a solid performance with
continued investment planned to support our brand positions.
Pig meat: Overall performance declined as a result of market weakness in certain
segments. Some recovery is anticipated in this business in the second half as
markets are expected to improve in addition to the normal seasonal performance
uplift.
FOOD INGREDIENTS AND NUTRITIONALS
This division has three business units. These are Food Ingredients Ireland which
produces cheese, butter, dairy spreads and whey protein ingredients, Food
Ingredients USA which produces cheese and whey and Glanbia Nutritionals. Glanbia
Nutritionals is developing as a leading provider of science-based nutritional
food solutions and products including a wide range of speciality ingredients for
use in ready-to-drink and powdered beverages, nutritional bars, dairy products,
snacks, and confectionary applications. In the first half, revenue from this
division 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: €22.1
million) and the operating margin declined to 2.4% (H1 2005: 4.1%), mainly
reflecting the sharp downturn in the performance of the Irish Food Ingredients
operations.
Ireland: The present EU dairy reform is in year three of a four year MTR
programme that reduces industry supports. In the first half of 2006 the combined
effects of lower world dairy markets and reduced EU dairy supports significantly
reduced product selling prices and a time lag in adjusting milk prices resulted
in lower margins. Recent milk price reductions combined with improved cost
competitiveness are expected to result in a second half performance that is in
line with the second half of 2005.
USA: Production volumes increased further in the first half of 2006 but the
benefit of this was more than offset by the impact of lower market prices for
cheese in the USA. An improvement in cheese markets with continuing volume
growth will underpin a good second half performance for Food Ingredients USA.
Nutritionals: This business delivered good revenue growth, mainly in new product
development and acquired businesses, both of which performed well. In the first
half the Group continued to invest heavily in people and skills development. A
good performance is expected in this business in the second half.
INTERNATIONAL JOINT VENTURES
Glanbia's strategy is to build international relevance in cheese, nutritional
ingredients and selected consumer foods and this incorporates a number of
strategically significant joint ventures producing cheese, whey and milk
products. These investments performed as planned in the first half of the year
with the performance of Nutricima in Nigeria and Southwest Cheese in the USA
reflecting the early stages of development of these businesses.
UK: Glanbia Cheese, a joint venture with Leprino Foods, produces mozzarella
cheese for the European market. This business continues to steadily improve
profitability and margins and is expected to perform well for the full year.
Nigeria: Nutricima is a joint venture with PZ Cussons plc which manufactures and
markets branded dairy based consumer products for the Nigerian market. This
business is performing to expectations with strong revenue growth and further
expansion is planned.
USA: The commissioning of Southwest Cheese (SWC), the Group's joint venture with
our main partners Dairy Farmers of America and Select Milk Producers Inc., is
substantially complete and the ongoing scale up of production is progressing to
plan.
Outlook
Since June, there has been little change in the trading environment in Ireland.
Operating costs remain a key ongoing focus for management, although previous
rationalisation initiatives support an improved performance from Irish
operations in the second half. In the USA, better cheese markets and continuing
volume growth underpins the delivery of a good result for the year overall.
International joint ventures are progressing well, with further progress at
Glanbia Cheese in the UK and the continued scale up of operations at Southwest
Cheese in the USA and Nutricima in Nigeria. As trading currently stands, we
expect to meet market expectations for the full year and we remain on track to
achieve double digit growth in 2007.
The announcement today of the acquisition of Seltzer Companies, Inc. is an
important step in the delivery of Glanbia's strategic plan and gives the Group a
strong platform to develop our Nutritionals business. It also advances the
international development of the Group into key global growth markets.'
CONSOLIDATED INCOME STATEMENT
for 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 - 4,209
Finance costs 5 (8,662) - (8,662) (9,869) (5,304) (15,173) (16,995) (5,304) (22,299)
Share of results
of joint ventures
and associates 283 - 283 38 - 38 932 - 932
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit before
taxation 30,152 - 30,152 30,641 (11,642) 18,999 68,715 (10,345) 58,370
Income taxes (3,226) - (3,226) (3,947) 7,454 3,507 (7,592) 6,935 (657)
------- ------- ------- ------- ------- ------- ------- ------- -------
Profit for the
period 26,926 - 26,926 26,694 (4,188) 22,506 61,123 (3,410) 57,713
------- ------- ------- ------- ------- ------- ------- ------- -------
Attributable to:
Equity holders
of the Parent 26,725 22,293 57,396
Equity minority
interest 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 EXPENSE
for 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) - defined
benefit schemes 42,536 (25,020) (42,303)
Deferred tax on pension gain/(loss) (4,796) - 4,054
Currency translation differences (943) (9,494) (3,042)
Prior period restatement - Amendment
of IAS 21 2 - 3,907 3,931
Fair value adjustments 9 4,557 (269) (3,465)
------- ------- -------
Net income/(expense) recognised
directly 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) 16,571
Non-equity minority interest - - -
Equity minority interest 201 213 317
------- ------- -------
68,280 (8,370) 16,888
------- ------- -------
CONSOLIDATED BALANCE SHEET
as at 1 July 2006
Half year Half year Year
Notes 2006 2005 2005
(as restated) (as restated)
€'000 €'000 €'000
ASSETS
Non-current assets
Property, plant and equipment 337,597 322,055 332,003
Intangible assets 58,330 44,790 57,963
Investments in associates 11,066 10,839 11,090
Investments in joint ventures 58,107 50,846 59,832
Available for sale investments 29,452 32,762 29,511
Trade and other receivables 58,220 55,886 56,874
Derivative financial instruments 2,730 435 1,825
Deferred tax assets 11,073 12,299 15,869
------- ------- -------
566,575 529,912 564,967
------- ------- -------
Current assets
Inventories 157,619 141,572 144,250
Trade and other receivables 237,203 247,732 143,610
Derivative financial 5,463 1,359 1,125
instruments
Cash 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
------- ------- -------
EQUITY
Issued capital and reserves
attributable to equity
holders of the Parent
Share capital 98,309 95,208 97,964
Other reserves 9 123,885 115,033 120,990
Retained earnings 10 (45,756) (116,457) (101,535)
------- ------- -------
176,438 93,784 117,419
Equity minority interest 6,500 6,298 6,299
------- ------- -------
182,938 100,082 123,718
------- ------- -------
LIABILITIES
Non-current liabilities
Borrowings 8 333,392 316,724 319,727
Deferred tax liabilities 34,104 33,007 34,471
Retirement benefit obligations 120,124 151,696 165,016
Provisions for other
liabilities and charges 6,616 6,389 6,072
Capital grants 14,382 14,459 14,855
------- ------- -------
508,618 522,275 540,141
------- ------- -------
Current liabilities
Borrowings 8 986 324 330
Provisions for other 2,357 9,075 8,433
liabilities and charges
Trade and other payables 295,993 310,921 278,583
Current tax liabilities 7,416 4,966 4,605
Derivative financial 1,735 3,370 2,547
instruments ------- ------- -------
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 STATEMENT
for the half year ended 1 July 2006
Half year Half year Year
Notes 2006 2005 2005
€'000 €'000 €'000
Cash flows from operating
activities
Cash (absorbed by)/generated
from operations 11 (51,169) 50,286 162,905
Interest received 301 142 670
Interest paid (8,837) (15,543) (23,177)
Tax refunded/(paid) 415 292 (3,777)
------- ------- -------
Net cash from operating (59,290) 35,177 136,621
activities ------- ------- -------
Cash flows from investing
activities
Acquisition of subsidiary, net of (811) (10,050) (19,366)
cash acquired
Purchase of property, plant and
equipment (28,112) (24,304) (46,979)
Purchase of available for sale
investments (2,667) (5,081) (5,214)
Disposal of subsidiary, net of cash 812 835 (147)
disposed
Disposal of investments 4,147 - 14,394
Proceeds from sale of property,
plant and equipment 716 2,535 4,418
------- ------- -------
Net cash used in investing
activities (25,915) (36,065) (52,894)
------- ------- -------
Cash flows from financing activities
Proceeds from issue of ordinary shares 190 - 731
Sharesave scheme - receipt from
trustees - - 2,191
Drawdown/(repayment) of 17,329 (12,293) (20,242)
borrowings
Finance lease principal
drawdowns/(payments) 7,809 (448) (519)
Dividends paid to Company's
shareholders (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 and
cash equivalents (69,376) (22,618) 51,041
Cash and cash equivalents at
the beginning of the period 104,405 51,625 51,625
Effects of exchange rate changes
on cash and cash equivalents (1,846) 1,431 1,739
------- ------- -------
Cash and cash equivalents at the 33,183 30,438 104,405
end of the period ------- ------- -------
NOTES TO THE INTERIMS FINANCIAL STATEMENTS
for the half year ended 1 July 2006
1 Basis of preparation
This condensed interim financial information for the half year ended 1 July 2006
has been prepared in accordance with IAS 34, 'Interim Financial Reporting'. The
condensed interim financial report should be read in conjunction with the annual
financial statements for the year ended 31 December 2005.
The figures for the half years ended 1 July 2006 and 2 July 2005 have not been
audited. The figures for the full year ended 31 December 2005 represent an
abbreviated version of the Group's financial statements for that year, which
received an unqualified audit report.
2 Accounting policies
The accounting policies adopted are consistent with those adopted in the
preparation of the annual financial statements for the year ended 31 December
2005 and are as described therein, except as outlined below.
The Group has considered all amendments to current standards and interpretations
together with all new standards and interpretations and have identified the
following changes that are applicable to the Group:
The Group has adopted the amendment to IAS 21 'Net Investment in a Foreign
Operation', from 1 January 2006. The adoption of this amendment requires that
all foreign exchange gains and losses that form part of the net investment in a
foreign operation, including loans between fellow subsidiaries, will be
recognised directly in reserves on consolidation. Prior period comparative
figures have been restated to reflect the impact of this change.
The Group has also adopted IFRIC Interpretation 4 (Determining whether an
Arrangement contains a Lease) and accordingly, from 1 January 2006, has
capitalised 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 252,282 242,523 493,582
Food Ingredients and Nutritionals 504,896 541,321 1,107,288
Agribusiness and Property 165,615 142,283 229,142
------- ------- -------
922,793 926,127 1,830,012
------- ------- -------
Pre-exceptional operating profit by business
segment
Consumer Foods 8,470 8,208 27,139
Food Ingredients and Nutritionals 12,079 22,094 42,746
Agribusiness 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 of
operations (a) - - (331)
Restructuring cost (b) - (6,338) (15,669)
Profit on sale of quoted (c) - 10,959
investments ------- ------- -------
- (6,338) (5,041)
Finance cost - cancellation of
preferred 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 on
disposals, restructuring and termination of operations.
(b) The restructuring cost in 2005 relates to costs of rationalisation
programmes carried out mainly in the Consumer Foods and Food Ingredients
business units in Ireland.
(c) During 2005, the Group benefited from the exchange of shares held in
Irish Agricultural Wholesale Society Limited for shares in IAWS Group plc. The
profit arises from the subsequent sale of these shares.
(d) A taxation benefit arising from the disposal of certain US operations in
prior years, which previously had not been recognised in the financial
statements, was finalised during 2005. This gave rise to a gain, which by virtue
of its scale and nature, was separately disclosed as a non-recurring exceptional
item 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 preferred
securities and preference shares (1,820) (4,891) (6,595)
------- ------- -------
Total finance costs - pre-exceptional (8,662) (9,869) (16,995)
------- ------- -------
Finance costs - exceptional
Cancellation 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 million
subordinated secured loan note granted by The Cheese Company Holdings Limited in
2004, representing part proceeds on the sale by the Group of a 75% interest in
its UK hard cheese business.
(ii) On 15 June 2005 the Group prepaid the US$100 million 7.99% cumulative
guaranteed preferred securities, giving rise to a cost of €5.3 million, which
has been disclosed as an exceptional item.
6 Dividends
A final dividend in respect of the year ended 31 December 2005 of 3.24 cent per
share was paid during the period. On 5 September 2006, the Directors approved
the payment of an interim dividend for 2006 of 2.38 cent per share (2005 interim
dividend: 2.27 cent per share). This interim dividend will be reflected in the
financial 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 €'000
Basic
Profit attributable to
equity holders of the Company 26,725 22,293 57,396
--------- --------- ---------
Weighted average number of
ordinary 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 of
ordinary shares in issue 292,943,460 290,911,646 291,469,902
Adjustments for share options 493,424 1,776,440 1,134,139
--------- --------- ---------
Adjusted weighted average
number 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 holders
of the Company 26,725 22,293 57,396
Exceptional items - 4,188 3,410
--------- --------- ---------
26,725 26,481 60,806
--------- --------- ---------
Adjusted earnings per share (cent
per 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 986 324 330
Borrowings due after one year 333,392 316,724 319,727
Less:
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 foreign
currency net investments - (1,756) - (1,756)
Gains on interest rate swaps - - 2,246 2,246
Foreign exchange contracts - gain in - - 3,375 3,375
period
Transfers to income statement
- Foreign exchange contracts - - (285) (285)
- Available for sale investments - - 6 6
Revaluation of forward commodity - - (146) (146)
contracts
Deferred tax on fair value - - (639) (639)
adjustments
Cost of share options 123 - - 123
Discount 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 - 42,536
Deferred tax on pension gain (4,796) - (4,796)
Currency translation differences 813 - 813
------- ------- -------
Net income recognised directly in equity 38,553 - 38,553
Profit 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 2,172
Share of results of joint ventures
and associates (283) (38) (932)
Income taxes 3,226 (3,507) 657
Depreciation 13,122 12,884 23,518
Amortisation 1,788 1,702 3,313
Cost of share options 123 - 161
Exchange losses 66 (2,074) 196
Gain 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 22,299
Amortisation of government grants
received (471) (817) (1,424)
------- ------- -------
Net profit before changes in
working capital 42,368 44,134 89,996
Change in net working capital
(Increase) in inventory (15,379) (5,016) (5,501)
(Increase)/decrease in short term
receivables (91,792) (71,192) 35,419
Increase in short term 19,710 81,718 35,849
liabilities
(Decrease)/increase in provisions (6,076) 642 7,142
------- ------- -------
Cash (absorbed by)/generated from
operations (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 Exchange
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