Glanbia has reported a 28 per cent fall in pretax profits to €38 million – before exceptionals – for the six months to the end of June.
Revenues at the food group dropped 14.6 per cent to €945 million from €1.1 billion over the same period last year
The sustained downturn in the global economy had led to weakening consumer confidence, while international dairy prices are sharply down on 2008, the company said.
The downturn had resulted in a “dramatic” reduction in dairy product returns and US cheese prices reaching historic lows.
Glanbia managing director John Moloney said in a telephone interview today that global dairy markets have probably reached stability and that there would probably be a slow recovery in prices.
First-half pre-exceptional operating profit fell to €47.8 million from €56.5 million a year earlier.
Earnings per share was 12.35 cents and the company maintained its full-year forecast for EPS of 30 to 31 cents.
Glanbia said while “unprecedented market conditions led to a loss of earnings momentum for the half and full year, many aspects of the group delivered reasonable performances despite a very challenging trading environment”.
Additional reporting Bloomberg
