Glanbia upgrades full-year outlook

Food group Glanbia upgraded its full-year outlook as it described its performance in the first half of the year as “solid”.

The group said it was now expecting growth of between 8 per cent and 10 per cent in adjusted earnings per share for the year

"The overall outlook for the group for the remainder of the year is positive," group managing director John Moloney said.

Revenue for the year was 1.6 per cent higher on a constant currency basis, reaching just under €1.4 billion for the six-month period.

A strong performance in Glanbia’s global nutritionals was underpinned by positive demand and price growth in key nutritional market segments

The group said its US cheese division showed a "reasonable" performance in the first half of the year against the background of weaker prices.

There was a generally weaker global dairy market in the first half of the year, but Glanbia said its dairy Ireland division and international joint ventures put in satisfactory.

In a separate announcement this morning, Glanbia said it had signed a non-binding memorandum of understanding with majority shareholder Glanbia Co-operative Society to enter into a joint venture regarding its dairy ingredients Ireland business. The society will reduce its shareholding in Glanbia to 41.4 per cent, to part-fund its investment and also distribute 7 per cent of Glanbia share capital to society members, subject to shareholder approval.