Agribusiness and food ingredients group Glanbia today reported a 7 per cent fall in full-year operating profit before exceptionals.
But the group said its 2006 results would be in line with expectations and that it would achieve double digit growth in 2007.
Glanbia's profit before tax, intangibles and exceptionals for 2005 rose to €68.7 million from €68.6 million in 2004.
Glanbia's revenue in 2005 was €1.83 billion, up from €1.75 billion the previous year.
The group said a difficult year in Ireland impacted the its results, as Irish operations continue to be hit by a combination of ongoing EU reform, inflationary pressures and a competitive market environment.
It said its international operations performed well. US Food Ingredients delivered a solid result, together with strong organic growth in the evolving Nutritionals business.
Joint ventures in New Mexico and Nigeria, which are central to the group''s strategic development, are progressing well, the group added.
The board raised the dividend for the year to 5.51 cents from 5.25.
Managing director John Moloney said that while there are ongoing challenges in Irish operations and unpredictibility in energy prices, the group expects key cost and product development initiatives in these businesses together with ongoing international development to underpin the delivery of 2006 results.