Irish food company Glanbia posted a 21% rise in fiscal 2008 earnings today (4 March) and forecast further profit growth despite a tough trading environment in the year ahead.
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Pre-tax profits totalled EUR120.3m (US$151.3m) for the year, an increase of 20.8%. When exceptional items – including restructuring costs and Glanbia’s exit from its pigmeat business – are factored in, pre-tax profits totalled just over EUR100m.
Revenue was marginally up at EUR2.2bn for the 12-month period.
Adjusted earnings per share increased 18.5% to 35.86 cents.
Commenting on the results, MD John Moloney said all of Glanbia’s businesses performed in line with, or better than, expectations, except for its Irish food ingredients unit, which suffered a dip in profitability.
Glanbia’s share of revenue from joint ventures rose by almost 5% to EUR370m, with strong growth in Southwest Cheese in the US.
In the international division, which includes the Irish food ingredients unit, revenue rose by 6% to almost EUR1.5bn, but profits fell 3% to EUR82.5m.
Revenues from Glanbia’s Irish consumer foods fell 7.5% to EUR743m due to Glanbia’s exit from its pigmeat business. Profits, however, jumped 68% to EUR51.5m.
Looking to 2009, Moloney said that it would be a challenging year with the global dairy market likely to weaken further.
Overall, however, the company targeted earnings growth in the low- to mid-single digits.
Glanbia also announced that deputy managing director and finance director Geoff Meagher would retire from the board in June. Siobhán Talbot will replace him as finance chief.
