Dairy giant Glanbia is on track to meet its 2013 growth targets in earnings, it said in an interim management statement today.
While conditions in the four months to 27 April remained challenging in its home market of Ireland, the company was boosted by growth in its US division and its Performance Nutrition department, which includes milk and whey proteins.
“Overall the Group delivered a solid performance in the first four months of 2013. Trading is in line with expectations and we expect this trend to continue with growth driven by our US Cheese & Global Nutritionals segment and, in particular, Performance Nutrition,” said group managing director John Moloney.
Glanbia was on track to deliver 8% to 10% year-on-year growth in adjusted earnings per share, Moloney added.
Total Group turnover grew almost 9% in the first four months of the year, on the back of 5% growth in volume and 4% price growth.
Revenue at Dairy Ireland grew 2% in the first four months of the year, with volumes up 2%. Price increases drove a 4% rise in turnover; however, this was offset by a 4% drag on turnover caused by the divestment of the Yoplait Ireland franchise, the company said.
Glanbia’s Consumer Products division in Ireland – which encompasses brands such as Avonmore, Kilmeaden and Premier Milk – had a “difficult start” to the year, and has put prices up to cover increased costs. “Increasing milk input costs have not yet been recovered in wholesale price increases and this has negatively impacted the performance of this business year to date,” Glanbia said.
Glanbia recently announced it would invest €157m (£132m) in a new dairy powder plant in south-east Ireland, creating 1,600 new jobs.