Glanbia shares soar on earnings boost
GLANBIA's share price rose at its fastest pace in four months yesterday after the firm said it was on track to report earnings at the higher end of expectations.
Newly-released results showed sales at the Irish-headquartered dairy company were up 14pc in the nine months ending October 5, in comparison to the same period a year before. It expects this trend to continue for the rest of the year.
The group, which trades on the Irish Stock Exchange, said it foresees earnings per share growth of about 10pc for 2013, towards the higher end of predictions made earlier this year.
The company's share price had risen by 3.1pc to €9.90 by late afternoon following the announcement, after paring gains of as much as 5.5pc earlier in the day
"Trading is in line with expectations and we expect this trend to continue for the remainder of the year," said Mr Moloney.
"Strong underlying momentum continues," observed Dublin stockbroking firm Davy.
However, the company cautioned that its Irish dairy business continues to be challenging due to "underperformance" in its consumer products business. Revenues were up 9pc but profits were hurt after milk input costs rose to record high levels.
The division recently announced a further phase of restructuring.
It has also begun a voluntary redundancy programme with staff at three Irish sites in Drogheda, Co Louth, Ballitore, Co Kildare, and Citywest in Dublin.
"The reorganisation programme will not have a direct impact on performance in the current year and therefore results for consumer products for 2013 are expected to be significantly below 2012," the company said.
The reorganisation will cost between €14m and €18m this year but will be offset by a one-off pension credit of €13m.