(Alliance News) - Glanbia PLC on Thursday said it performed ahead of expectations in the first half of 2021, but warned of second-half inflation pressure.
Shares were down 1.1% at EUR14.33 in London on Thursday morning trading.
The Kilkenny, Ireland-based ingredients and powdered milk producer booked pretax profit of EUR93.0 million for the six months that ended July 3, compared to EUR58.4 million for the same period last year.
Revenue was up 11% at EUR2.04 billion compared to EUR1.84 billion a year earlier.
The firm's adjusted earnings per share was up 85% on a constant currency basis and 70% on a reported basis.
As a result, Glanbia raised its full year adjusted EPS expectations.
It now expects full year adjusted EPS growth of 17% to 22% on a constant currency basis versus the prior year, compared to the previous expectation of 6% to 12%.
"While the Group remains vigilant to the continued volatile and disruptive potential of the Covid-19 pandemic, strategic actions have enabled a strong recovery in the first half of 2021 from the comparative challenges of 2020," said Managing Director Siobhan Talbot.
The firm declared an interim dividend of 11.75 euro cents, up 10% from 10.78 euro cents a year before.
Talbot added: "While cost inflation will be a headwind for the group in the second half of the year, price increases and margin management are expected to mitigate some of the impact and will also provide the opportunity to increase investment behind brand marketing and [Nutritional Solutions unit] capabilities, to drive long-term sustainable growth."
By Josie O'Brien; josieobrien@alliancenews.com
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Glanbia (GLB)