Dairy group Glanbia said the market environment for its Irish consumer-foods unit remains “very challenging”.
The company, which produces around a third of all milk and cheese produced in the State, said in this context the unit continues to deliver “a reasonable result,” Glanbia said in a statement.
Glanbia said it expects 2009 adjusted per-share earnings of 30 to 32 cents, as announced last month when it reduced its forecast from a previous target of 36 to 37 cents per share, citing deterioration in global dairy markets.
At the time Glanbia said it expected its Irish food-ingredients unit to make a “significant” loss this year.
The performance of that unit will affect first-half results, Glanbia said today. At 1.10pm Glanbia shares were down 1 per cent at €2.12 in a market that was 3 per cent lower.
The company’s US food-ingredients business “is experiencing good demand” and Optimum Nutrition, acquired in August 2008, is on course to meet its full-year forecast, Glanbia said.
Additional reporting Bloomberg