Dairy Ireland, the Glanbia division that includes its Consumer Products portfolio, posted a 3.4% rise in revenues to €652.2 million in the year to 4 January 2014, according to accounts filed this morning.
However, EBITA at the division decreased 29.1%, to €15.1 million, with EBITA margin declining by 110 basis points. The division includes both Consumer Products brands such as Avonmore and an Agribusiness portfolio.
In a statement, Glanbia said that Dairy Ireland 'had a difficult year in 2013 as underperformance in Consumer Products outweighed a solid performance in Agribusiness.'
'In line with trends in global dairy markets, the average milk cost for Consumer Products in 2013 was significantly ahead of the prior year as Irish milk prices hit record levels by historical standards. This resulted in margin pressures as our ability to pass through these input cost increases in a difficult Irish retail environment was limited.'
The statement noted that the Consumer Products division recently announced a 'further phase of rationalisation to improve its competitiveness in the domestic market', including a restructuring of its supply network and head office functions.
Overall, total group earnings were up 8.0% for the year, to €3.28 billion, with EBITA up 5.6%.
“Glanbia had another year of double digit earnings growth in 2013 as the Group delivered a 12% increase in adjusted earnings per share," said Siobhán Talbot, Group Managing Director. "Our two global growth platforms performed well, particularly Global Performance Nutrition where strong momentum in branded revenue growth and international expansion delivered a 28% increase in profitability, on a constant currency basis. We expect 2014 to be another positive year for the Group."
© 2014 - Checkout Magazine by Stephen Wynne-Jones