Glanbia has issued a robust assessment of trading for the year to date, but warned of weakening demand globally for dairy products.
Sales at its Irish dairy business were up almost a quarter (23%) for the year to 31 October.
Volumes across the whole business were up 10% compared to 2010, while overall sales soared by 28%, due in part to the acquisitions of US manufacturer Bio-Engineered Supplements & Nutrition at the beginning of the year.
However, the company said cheese prices in the US were now softening as demand eased. And group MD John Moloney warned that margins at the company’s nutrition business would take a hit from the increased cost of whey.
“Most aspects of the business are performing well in the second half,” said Moloney.
“Strong organic top-line revenue growth continues, building on excellent first-half results. As we exit 2011, there are some headwinds and global macroeconomic uncertainty to contend with. But we are confident of a strong full-year outcome.”
Has the outlook soured for long-term dairy contracts? (analysis; 9 April 2011)
Glanbia snaps up US supplements business (19 January 2011)