Glanbia sees higher profits on rising dairy demand

Glanbia Plc, the producer of a third of Ireland's milk and cheese, said profit may increase as much as 8% this year as economies strengthen and demand for dairy products improves.

Profit last year was partly affected by a major first-time loss at the Irish dairy ingredients unit. The performance at the consumer products division, where the company reduced prices to boost demand, was helped by cost-cutting measures. Glanbia plans further cost savings at its dairy business this year and will take a EUR15 million (US$21.6 million) charge related to job cuts.

Trading conditions improved somewhat in the later stages of 2009 with an uplift in global dairy and US cheese markets, but markets remain volatile and consumer sentiment fragile, Glanbia said.