Glanbia plc, the international cheese and nutritional ingredients group, has announced its results for the first half of the year which ended on July 4, 2009.
For the first half of the year revenue was down by approximately €160 million or 14.6 per cent. Operating profits were also down 15.4 per cent while financing costs were the same at 5.1 per cent. The basic earnings per share was at 10.30c - down from 13.98c or 26.3 per cent on last year, while the net debt of the company was up €250.2 million.
The company has said that the first half of the year was difficult as expected, however it adds that Glanbia is on target to achieve its predicted full year earnings
John Moloney, group managing director, said, “A growing contribution from higher margin businesses and a strategic cost reduction programme have enabled us to counterbalance unprecedented market circumstances and deliver a reasonable set of results despite a very substantial first time loss in Irish dairy ingredients.
“It has been, without doubt, a difficult six months. The sustained downturn in the global economy led to weakening consumer confidence. In addition, international dairy prices were sharply down on 2008, resulting in a dramatic reduction in dairy product returns, and US cheese prices reached historic lows. The expected impact of these challenges led to a revision of earnings guidance for the full year. While we remain cautious in our outlook today, we expect the overall rate of decline to moderate in the second half. Earnings guidance for the full year is unchanged, with full year adjusted earnings expected to be 30 to 32 cents per share.
“We are pleased with the excellent operational performance throughout the Group and the success to date of a major cost saving programme and we remain confident in the businesses that are central to our growth strategy.”
