Glanbia's pretax profits topped €74m last year

Profits at listed food and agribusiness group Glanbia topped €74 million in 2006, the group reported yesterday.

The Kilkenny-based company said revenue grew 1 per cent in 2006 to €1.85 billion from €1.83 billion the previous year.

Operating profits were €85.6 million last year, a 6 per cent increase on 2005, when they fell just short of €81 million. Glanbia boosted operating margins to 4.6 per cent to 4.4 per cent.

Managing director John Moloney said yesterday that, as it continued to develop its international businesses, the group planned to push operating margins "north of 5 per cent".

Profit before tax and once-off items grew 8 per cent in 2006 to €74.4 million from €68.7 million a year earlier. That figure included a €2.8 million contribution from joint ventures, almost three times the €900,000 that they contributed to the bottom line in 2005.

The main sources of this were its Glanbia Cheese business, a partnership with Leprino in Britain, and an initial contribution from Southwest Cheese, the $190 million (€144 million) venture with South West Dairies in New Mexico in the US which began producing cheese and whey late last year.

Earnings per share (EPS) increased by 14 per cent to 22.5 cent from 19.7 cent. The board proposes to pay a final year dividend of 5.79 cent, a 5 per cent increase on the 2005 payout of 5.51 cent.

The group ended the year with a €100,000 charge for exceptional items. It provided €3.3 million to cover the cost of redundancies resulting from the closure of its pigmeat cannery in Roosky, Co Roscommon.

In addition, there was a €9 million charge associated with the sale of its 25 per cent interest in the Cheese Company in the UK, and the cancellation of an associated loan note. However, tax credits resulting from the losses in this business came to €12.3 million, which virtually cancelled out the other charges.

Glanbia committed itself last year to spending a further €50 million on overseas projects. These will include €5 million on its first nutritionals - whey, vitamins and minerals - manufacturing operation in the Asia Pacific region, and €22.5 million to boost capacity at its Nutricima powdered milk joint venture with PZ Cussons in Nigeria.

chairman Michael Walsh said that international business accounts for 40 per cent of Glanbia's profits and revenues.