LONDON (Alliance News) - International dairy food company Glanbia PLC Tuesday said trading in the first nine months of the year has been in line with expectations, and said it expects this trend to continue for the remainder of the year.
The Ireland-based company said it expects to deliver 2013 adjusted earnings-per-share growth at the upper end of previous guidance, at around 10% on a constant currency basis, driven by a strong performance from its global ingredients and global performance nutrition divisions.
However, Glanbia said it expects to incur between EUR14 million and EUR18 million in restructuring costs within its Dairy Ireland business for the year.
"Momentum continues in our two core global businesses, particularly in Global Performance Nutrition where revenue growth continues to outperform market growth rates. Across the group we have a range of strategic capital investments, cost initiatives, and rationalisation programmes underway, which are helping to enhance our future growth and expansion prospects," said Managing Director John Moloney in a statement.
The nutrition and ingredients group has a number of joint ventures and associates, including US-based Southwest Cheese, Glanbia Ingredients Ireland, Glanbia Cheese in the UK, and Nigeria-based Nutricima. It said that group revenues, including these, rose 14% in the nine months to October 5, largely due to 9% volume growth and a 5% increase in prices. However it said that the impact of recent acquisitions and disposals, including the disposal of 60% of Glanbia Ingredients Ireland Limited, largely offset one another.
Glanbia said that its Global Performance Nutrition business delivered a strong performance for the first nine months of the year, with revenues up 19%, driven by branded revenue growth and volume growth. It said it expects full year average input costs to be below last year, and some margin expansion for 2013.
Glanbia also said that its USD45 million investment in capacity expansion in Chicago is proceeding in line with plans, and is expected to be commissioned in the second quarter of next year.
The group said that the outlook for Dairy Ireland for the full year remains challenging, largely due to an under-performing consumer-products business. It said that in the nine-month period, Dairy Ireland revenue rose by around 9%, boosted by volume growth and price increases.
Glanbia said revenue for its joint ventures and associates was up 14% for the period, buoyed by higher global dairy-market pricing and an increase in volumes. It said it expects the overall full-year performance for the division to be broadly similar to the previous year.
Shares in the dairy food group were trading 4.2% higher Tuesday morning at 10.06 pence per share.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Glanbia (GLB)