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Glanbia upbeat on breaking profit targets for this year

GLANBIA said it expects to beat its profit targets this year, as the company reported a strong third quarter performance.

In an interim management statement, the company said earnings per share growth would hit 10pc this year, ahead of market forecasts.

Growth was driven by its US Cheese & Global Nutritionals business, which provides dietary supplements to the sports industry and is the biggest supplier of cheese for pizzas in North America. Revenues there grew by 9pc.

Turnover at its Diary Ireland division was down marginally while its joint ventures were almost unchanged.

Company chief executive John Moloney said the company had performed “well” this year so far.

He said the planned joint spin off the company’s milk processing business into a J=joint venture with the co-op was a “key project” this year.

“This transaction offers a new model for post quota growth for Glanbia milk suppliers and underpins a potential 60pc expansion of our Irish dairy processing capacity. Voting to approve the transaction will take place in the coming weeks, with a strong ‘yes’ recommendation from the Glanbia board.

“I believe this is the best route to deliver the next phase of growth in both our Irish and international businesses and to create further value for shareholders, including Glanbia Co-operative Society,” he added.