Trading Statement

RNS Number : 3041P

Glanbia PLC

14 July 2010

 

2010 HALF YEAR PRE CLOSE TRADING STATEMENT

On track for a very strong first half performance

14 July 2010 - Glanbia plc (Glanbia), the international nutritional and cheese group, issues this pre close trading statement for the half year ended 3 July 2010.

Glanbia confirms today that, as anticipated, the Group is on track for a very strong first half performance relative to 2009.

Dairy Ireland

The marked improvement in the Group's half yearly performance is largely underpinned by a return to profitability of Irish Dairy Ingredients, which was loss making in the first half of 2009. This business has benefited from a sustained improvement in global dairy markets throughout the first six months of 2010.  Consumer Products had a very tough first half in 2010. The Irish retail environment continues to be extremely competitive and operating margins in this business in the first half were impacted by higher milk costs and the effects of price reductions implemented at wholesale level in the second half of 2009. Agribusiness had a satisfactory first half performance. Implementation of the 2010 rationalisation programme across the Dairy Ireland businesses continues to plan.

US Cheese and Global Nutritionals

Positive market trends continue in the Group's US Cheese and Global Nutritionals businesses which had a good result in the first half. Demand for US cheese remains robust and markets were higher relative to 2009. Global Nutritionals had a very good first half with strong organic growth across all business segments. Operating margins for Global Nutritionals remain resilient, particularly in the context of ongoing investment in developing the Performance Nutrition brands.

Joint Ventures & Associates

In addition, international joint ventures and associates had a strong first half with good performances by Southwest Cheese in the USA and Glanbia Cheese in the UK and a sustained but modest return to profitability at Nutricima in Nigeria. The commissioning of a 40% expansion of the Southwest Cheese facilities, a US$85 million investment, was completed during the first half with this facility now operating at full expanded capacity.

Balance Sheet

The Group's net debt position as at 3 July 2010 will reflect the normal seasonal increase in working capital. In relation to the Group's Irish pension obligations, the process to implement the previously announced benefit reductions is progressing and is expected to be completed by the end of 2010.

2010 outlook

Overall, the Group is trading in line with expectations. Glanbia will announce its half year results on 25 August 2010.

ENDS

For further information contact:

Geraldine Kearney, Director of Corporate Communications.

T: 00 353 56 777 2241 / M: 00 353 87 231 9430

Disclaimer: Certain information disclosed in this Pre Close Trading Statement is forward-looking in nature.  This information and related forward-looking statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual outcomes/events to differ materially from any expected results or performances referred to in this Pre Close Trading Statement.

 

END

 

 

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