Ireland's Glanbia reports decrease in profit for 2009

Food group Glanbia has reported a 19% drop in pre-tax profits for the year ending 2009, in what it called a very challenging environment.

Glanbia said its pre-tax profits fell to EUR97.4 million (US$134 million) while revenues declined by 18% to EUR1.83 billion (US$2.5 billion).

Meanwhile, Glanbia's 54.6% major shareholder - the Glanbia Co-operative Society - wants to buy Glanbia's Irish operations. This is made of dairy ingredients, consumer products and agribusiness; its properties, joint ventures and business operations.

The farmer shareholders and co-op members would gain control of the key businesses that relate to them, leaving the company to concentrate on its US and international businesses, cheese and nutritionals.

A statement said talks are progressing well, and any decision would need shareholder approval. The discussions are underpinned by a clear strategic rationale and represent a unique opportunity to transform Glanbia, the statement added.

Glanbia said the global economic recession last year led to extreme volatility in global dairy markets in the first half of the year, which led to a significant impact on the company's revenue, profitability and earnings.