Irish Food group Glanbia today reported that its financial results for the first half of 2009 will be "significantly behind" compared with the same period last year, though this is broadly in line with its expectations. In 2008, there was a global boom in food commodity prices.

The group had lowered its outlook for the year in April.

In a trading update, Glanbia said its Irish food ingredients business had become loss-making due to volatility in world dairy markets, and this was impacting group's overall performance.

In Ireland, Glanbia said its consumer foods business was performing well despite increased competition and weaker consumer confidence, but revenue and profits were down in its agribusiness division.

Food Ingredients USA is performing in line with expectations but, results will be behind when compared with a strong first half in 2008. The Nutritionals business is achieving strong organic growth and Optimum is on target for its forecast contribution. International joint ventures are performing satisfactorily.  

2009 Outlook

Glanbia issued revised earnings guidance on 30 April 2009. It reiterated again today that despite a particularly difficult first half and limited prospects for a recovery in global dairy markets until late in the year, or early next year, adjusted earnings per share guidance for 2009 remains between 30 and 32 cents for the full year.

Goodbody's Liam Igoe said: "The statement is reassuring given the particularly difficult conditions in global dairy markets at present."