Glanbia ponders Dairy Ireland sale after tough year

Dairy foods company Glanbia posted a sharp fall in profits in the year to January 2 as it felt the impact of weak economic conditions globally and in its home market of Ireland.The company also announced that its majority shareholder, Glanbia Co-operative Society, has expressed an interest in acquiring the company's Dairy Ireland operations.Glanbia posted a pre-tax profit of €97.4m in the year to December 31, compared with €120.3m over the same period the previous year as revenues slipped to €1,830.3m from €2,232.2m.'In 2009, the group delivered a solid financial performance in very challenging circumstances,' managing director John Moloney said. 'The global economic recession led to extreme volatility in global dairy markets in the first half of the year, in particular, and this had a significant impact on Glanbia's revenue, profitability and earnings.' Revenues in the US Cheese and global nutritional division fell to €792.4bn from €844.2bn. The Dairy Ireland division saw revenues fall to €1,028.8m from €1,340.6m.'A deep consumer recession in Ireland drove an exceptionally competitive food retailing environment,' said Glanbia.The firm said its discussions with 54.64% shareholder Glanbia Co-operative Society over the sale of Dairy Ireland were based on a strategic rationale that would increase its focus on international nutritional ingredients and cheese, significantly improve financial flexibility and enhances development of its successful growth strategy.