March 9, 2007

Ireland's Glanbia posts income gains in 2006
 

Irish-based international dairy foods, pig meat, and nutritional ingredients group Glanbia saw pre-tax profits rise by eight percent last year. Profits before exceptionals went up to Euro 74.4 million from Euro 68.7 million on the back of a one percent rise in revenue from Euro 1,853.4 million to Euro 1,830.0 million.

Revenue, including Glanbia's share of the joint ventures and associates, was Euro 2.1 billion in 2006, up by eight percent on 2005.

Exceptional items included Euro 3.3 million in restructuring costs relating to the closure of the company's pig meat cannery operation, Euro 9.1 million which was the cost of the disposal of the group's remaining 25 percent interest and related loan note in The Cheese Company Holdings Limited to Milk Link Limited for Euro 70 million and Euro 12.3 million which was the recognition of a deferred tax asset relating to the group's former UK operations.

John Moloney, the company's group managing director, said 2006 was a good year for Glanbia since the results were in line in their market expectations despite difficult operations in the first and a half of the year:

Moloney noted the company has achieved key strategic milestones during the year including a US$105 million US acquisition of Seltzer and the opening of Southwest Cheese, a joint venture worth US$190 million.

Southwest Cheese is one of the world's largest natural cheese and whey processing plant. 

The company's profit rise was also due to the 50 million euro development capital expenditure in 2006, including 5 million euro to build the Group's first nutritionals operation in the Asia Pacific region and 22.5 million for a planned capacity expansion and new plant in the Nigerian joint venture, he said.

Moloney said Glanbia is on target to deliver double-digit earnings growth in 2007 and believes the outlook is positive for sustained high growth.