Glanbia posts healthy first half results despite FMD - Glanbia first half of 2001 financial results - Brief Article - Statistical Data Included

Eurofood, Sept 27, 2001

Irish firm Glanbia has announced its interim results for the first half of 2001, revealing operating profits of 45.46m [European Dollar], an increase of 84.4% compared to 24.65m [European Dollar] in 2000. Performance reflects the recent rationalisation and investment programme implemented by Glanbia.

Glanbia first half results (m [European Dollar])

Turnover by business class

                    H1 2001     H1 2000

Consumer foods       650 501     664 768
Food ingredients     488 892     438 315
Agribusiness         149 275     143 635
Total              1 288 668   1 246 718

Operating profit by business class

                    H1 2001     H1 2000

Consumer foods         7 150     (1 242)
Food ingredients      28 708      16 483
Agribusiness           9 597       9 410
Total                 45 455      24 651

Source: Glanbia

Turnover increased by 3.4% to 1 288.67m [European Dollar], up from 1 246.72m [European Dollar]. The increase in operating profit primarily reflects a strong performance in dairy food ingredients and agribusiness, together with improved results in its consumer foods operations. Pre-tax profit increased 195% to 32.23m [European Dollar], compared to 10.92m [European Dollar] in 2000.

The increased turnover includes the impact of the joint venture agreement with Leprino Foods for pizza cheese, which Glanbia announced last year.

Dairy Food Ingredients, which comprises the US and Irish dairy ingredients operations, supplying the nutrition and food processing sectors, had an excellent performance. Operating profit improved by 74.2% to 28.71m [European Dollar] up from 16.48m [European Dollar], with turnover rising by 11.5% to 488.89m [European Dollar] compared to 438.31m [European Dollar].

In the US the Group benefited from the additional cheese making and whey protein isolate capacity together with recovery in the USA cheese market.

Irish dairy ingredient operations also performed satisfactorily, despite the additional costs associated with managing the foot-and-mouth (FMD) situation. Continuing good market demand for cheese, proteins and formulated milk products, favourable currency exchange rates assisted overall performance.

CONSUMER FOODS

In its consumer foods business, which consists of Glanbia's businesses engaged in the production and marketing of dairy and meat products through retail and foodservice channels first half performance improved despite the impact of FMD on certain UK business units.

Operating profit advanced to 7.15m [European Dollar], compared to an operating loss of 1.24m [European Dollar] in the same period in 2000. Turnover declined to 650.50m [European Dollar] from 664.77m [European Dollar], reflecting the disposal of its lamb business in June 2000.

Glanbia said its Irish liquid milk and chilled foods businesses made satisfactory progress in a very competitive market environment.

FOOT AND MOUTH DISEASE

The outbreak of FMD created major issues for the group's fresh pork businesses with disruption to operations and exports in the UK business and closure of the Japanese markets for European pigmeat imports. Despite this, a satisfactory overall performance was achieved with Irish operations playing an important role in ensuring continued, quality supply to key UK customers. Glanbia's Agribusiness Division had a satisfactory performance in the first half of 2001, despite the increased costs associated with managing the FMD situation, particularly in milk assembly.