The company said it had experienced “a challenging first half as a result of the current difficulties in the pigmeat sector” in its consumer foods division.
“The business had a difficult first half in 2004,” the company continued, “with a substantial decline in profitability. The pigmeat industry is cyclical and this has been compounded in recent years by overcapacity and inefficiencies in production.”
However, the company said these difficulties had been offset by the introduction of products such as fresh flavoured milks earlier this year. Strong performance in its food ingredients and nutritionals businesses had also helped.
Glanbia’s turnover dropped 7.3% from £1.05bn to £974m in the half-year to July 3 2004. Profit before tax and exceptionals fell slightly from £37.6m to 35.7m. However, sales rose by 9.2% and pre-tax profit including exceptionals shot up from £10.7m to £35.7m.