Glanbia 2012 results beat expectations

Food group Glanbia today reported revenues of €2.88 billion for 2012, a 4.8 per cent increase on the previous year, driven by a strong performance in its global nutritionals division.

Pre-tax earnings for 2012 rose 9 per cent to€198.8 million, while the company also reported a better-than-expected 14.2 per cent jump in adjusted earnings per share to 52.9 cent.

The company said its improved numbers came on the back of a strong performance in its global nutritionals division which saw revenue grow by 20 per cent on the back of “positive markets and strong operational performances in each business unit”.

“We are in a stronger position than ever to drive the business forward and capitalise on our competitive advantage in both business-to-business and business-to-consumer nutritional products and solutions.”

Glanbia undertook a complex restructuring last year which saw the establishment a new joint venture between the plc and Glanbia co-op which will be known as Glanbia Ingredients Ireland.

The new venture, which saw the co-op's share in the plc reduced to 41.3 per cent, will be the largest dairy processing business in the country.

The company said the restructuring was part its strategic approach to the potential opportunity for expansion in Irish dairy processing, which will arise as a consequence of the abolition of EU milk quotas in 2015.

The group also invested in a serious of capital projects and acquisitions in 2012, which amounted to €115 million, including the €45 million acquisition of Aseptic Solutions in the USA to enhance its nutritional ingredient technologies division.

In its outlook for 2013, Glanbia it expected adjusted earnings per share growth, on a constant currency basis, of between 8 and 10 per cent for the full year from a base of 51.02 cents.

However, it remained cautious about the global environment, saying: “There are some headwinds with an uncertain global economic environment and challenging Irish retail environment, but the Group is well positioned to maintain its growth momentum.”