glanbia’s overall group revenue was up 1.9 per cent for the first quarter of the year, CEO John Moloney told last Wednesday’s company AGM in Kilkenny.
International demand for dairy products remained solid in the first three months, but prices for most dairy categories have weakened this year, due mainly to oversupply of milk.
Mr Moloney outlined that global milk production is up 4 per cent, while remand is running at just 2.4 per cent, creating significant oversupply.
Strong US milk production has also seen the cheese prices fall. Increasing demand for whey products, however, continues to boost the nutritional division.
Revenues for Dairy Ireland contracted by 4.6 per cent, dur to lower supplied from quota constrained dairy farmers.
“The Group is performing in line with expectations in what is a more challenging operating environment this year,” outlined John Moloney.
“We expect to deliver earnings in the first half of 2012 which are broadly similar to an exceptionally strong first half in 2011.
“We are successfully driving growth in nutritionals and the depth and strength of the portfolio in these dynamic growth sectors positions Glanbia well for the future.
“We reiterate our full year guidance of 5 per cent to 7 per cent growth in adjusted earnings per share, on a constant currency basis, for 2012.”