Glanbia sticks to forecast
Glanbia is sticking to its full year earnings forecast, despite taking an €8m hit in its domestic consumer food sales.
The company's trading statement for the first half of this year states that weak consumer sentiment in Ireland has hit sales of dairy staples and that this, combined with on-going high input costs, has led to an exceptional charge of €8m in its accounts. The dairy processor's US cheese business is also under pressure with lower sales than last year.
However, industry analysts expect this end of the business to improve over the short term. In addition, strong commodity markets and growth in their nutrition businesses has stockbrokers predicting that Glanbia will meet their full year earnings per share forecast of 11-13pc growth, on a constant currency basis.
Liam Igoe, an analyst at Goodbody Stockbrokers, is quoted on the Dairy Reporter website stating that "things have been going well for Glanbia. The strong international dairy market has benefited the commodities business and the nutrition business shows strong momentum with double-digit organic growth, which is pretty good by any standards."