International dairy group Glanbia has said that its full-year earnings per share will be at the upper end of market expectations but has warned on the performance of its consumer foods business.

Consumers foods had a challenging year and would be behind 2006 performance, Glanbia said in a trading update for the year to 29 December. International joint ventures had also been hit.

“Liquid milk and chilled food sectors remain competitive and in 2007 were impacted by the time lag in recovering the significant price increases for raw material inputs.”

However, its food ingredients and global nutritionals businesses had performed strongly, boosted by increased global demand for dairy products, it added.