Strong Performance By Glanbia
Reflecting strong performances from both its Irish and US operations, Glanbia, the global nutritional solutions and cheese group, has reported a 17.9% rise in operating profit to Eur161 million on revenue up 23.3% to Eur2.67 billion for the year ended December 31st 2011. Operating margin dropped 30 bps to 6% due largely to input cost pressures in performance nutrition.
On constant currency basis, Glanbia’s US Cheese & Global Nutritionals division increased revenue by 35% to Eur1.38 billion and operating profit pre exceptional increased 21.3% to Eur113.8 million. Glanbia has invested significant resources in recent years to develop and enhance its US Cheese & Global Nutritionals division. The acquisition and successful integration of BSN into Performance Nutrition complemented strong organic revenue growth during 2011.
Positive global dairy markets underpinned a solid performance by Dairy Ireland despite the challenges of the Consumer Products business. The Dairy Ireland business grew revenue by 19% to Eur1.35 billion and operating profit pre exceptional increased 23.2% to Eur53.6 million.
“Glanbia achieved excellent results in 2011 delivering 26.7% growth in adjusted earnings per share, on a constant currency basis,” says John Moloney, group managing director of Glanbia. “We expect the operating environment in 2012 to be more challenging than in recent years. Current global economic uncertainty has the potential to impact global dairy markets and fragile consumer confidence. The group’s focus on driving growth in nutritionals, combined with deep dairy market expertise and strong execution capability, position us well for the future. Our guidance for 2012 is for 5-7% growth in adjusted earnings per share, on a constant currency basis.”
