Glanbia reiterates earnings guidance

Nutritional ingredients and cheese group Glanbia said the group has performed broadly in line with expectations since its interim management statement in November, and reiterated its expectation of an increase of around 20% in adjusted earnings for 2010.Dairy Ireland performed well in the second half with good revenue growth compared to the second half of 2009, primarily reflecting stronger dairy markets in Irish Dairy Ingredients. Full year operating profit and margin are forecast to be well ahead of 2009, which was a difficult year for this division.Building on a good first half performance, revenue in both US Cheese and Global Nutritionals grew strongly in the second half. US Cheese's operating profit is expected to be lower than 2009, as performance was affected by the refurbishment of the Twin Falls' cheese plant in the first half, higher milk price premiums during the course of the year and a sharp weakening in US cheese prices in the fourth quarter. In Global Nutritionals, volume growth continues to outpace market growth rates. This is expected to underpin higher operating profits for US Cheese & Global Nutritionals for the full year. Divisional operating margins are expected to be lower following higher input costs and significant brand and people investment by Global Nutritionals during the year.The company expects year-end debt will be in the region of €420m.The company said it has acquired Bio-Engineered Supplements and Nutrition (BSN), for a total consideration of S$144m, on a debt free basis.The acquisition is expected to be earnings enhancing in 2011, and will be funded through Glanbia's existing banking facilities. Florida-based BSN is a leading developer, provider and distributor of nutritional products designed for health, training, physique development and performance.