LONDON (Alliance News) - Irish nutrition and ingredients business Glanbia PLC Wednesday reported an increase in profits for its last financial year, boosted by double digit growth in revenues, and raised its dividend 10% as it predicted further strong growth in the current year.
For the financial year ended January 4, Glanbia reported a pretax profit of EUR176.0 million, compared with a pretax profit of EUR150.2 million a year earlier, as revenues increased 8% to EUR3.28 billion, from EUR3.04 billion. The revenue rise would have been 10.5% if currencies had stayed constant during the year.
It also booked an exceptional credit of EUR5.8 million after it revised its pension schemes, although this was partly offset by rationalisation costs incurred in Dairy Ireland during the year.
Glanbia said revenues were driven by strong trading at its nutrition division and international expansion.
"Results were underpinned by a strong performance by Global Performance Nutrition, as over 20% branded revenue growth drove a 100 basis point margin expansion," the company said in a statement.
It increased its total dividend for the year to 10.00 cents, up from 9.09 cents.
Total capital expenditure amounted to EUR112.2 million, including EUR76.5 million of strategic spend including a bolt-on acquisition of a Scandinavian sports nutrition business in January. Major projects completed during the year include the cheese innovation centre in the US, a specialty grains plant and an oats milling facility.
"Our 2014 plans include capital expenditure in the region of EUR120 million, of which approximately EUR80 million will be spent on strategic capital projects," the company said in a statement.
Group Managing Director Siobhán Talbot said she is confident in the year ahead.
"We expect 2014 to be another positive year for the group. We will benefit from our ongoing organic investment programme, good prospects for Global Ingredients and Global Performance Nutrition and an expected improvement in Dairy Ireland," she said.
The company said it is expecting adjusted earnings per share to grow 8% to 10% on a constant currency basis in the current year. It also has an ambition of delivering a similar annual organic growth rate through to 2018, while seeking to sustain a return on capital employed in excess of 12%.
Adjusted EPS was 55.46 euro cents in its last year, up 11.9% at constant currencies, or 8% including currency movements.
Shares in the company were trading 2.3% higher at 11.20 pence per share Wednesday morning.
By Rowena Harris-Doughty; rowenaharrisdoughty@alliancenews.com; @rharrisdoughty
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Glanbia (GLB)