Food group Glanbia said 2011 earnings per share should rise 20 per cent, at the top end of previous guidance, on strong growth in its US cheese and global nutritional businesses.

Glanbia also said today it was seeing a contraction in margins in its key performance nutritionals business due to increased prices for whey.

"There are some headwinds and global macroeconomic uncertainty to contend with, but we are confident of a strong full-year outcome," chief executive John Moloney said.

Ireland's export-focused food sector has outperformed the broader stock market in recent months and is helping prop up an economy struggling to emerge from recession.

Glanbia's revenue growth, including joint ventures and associates, grew 28 per cent in the first 10 months and will be "knocking on the door of €3 billion" for the year, Mr Moloney told Reuters.

Net of joint ventures revenues will be close to a market consensus of €2.54 billion, he said. Underlying volume growth for the group was up 10 per cent, driven primarily by nutritionals and its ingredients business.

Income for US cheese and global nutritionals was up 35 per cent, aided by the acquisition of US performance nutrition business Bio-Engineered Supplements.

Glanbia suffered margin contraction in its performance nutrition business due to higher prices for whey, which Moloney said was likely to be temporary. "I think it will balance out through the middle of next year," he said, citing increased supply of whey and plans to increase prices to consumers.

Glanbia's Irish dairy business saw revenues climb 23 per cent. The company said prices were easing as farmers reached EU production quota limits. "Prices are softer. But softer is the word. We do not see a collapse barring a collapse of the global economy," Mr Moloney said.

It reported flat revenue and contracting margins in its consumer foods division due to weak Irish demand. It said it had cut its Irish consumer cost base back to 2005 levels.

Reuters