Food conglomerate Glanbia reported profit and revenue fell in the last financial year, and confirmed it was in talks to sell its Irish dairy operations.
In a statement this morning, the company said pre-tax profit fell 19 per cent to €97.4 million in the year ended January 2nd, 2010. Revenue slipped 18 per cent to €1.8 billion over the same period.
The company described the results as "solid" and said they were in line with market expectations, despite the challenging trading environment.
Adjusted earnings per share were down 14.4 per cent to 30.68 cent, while dividends were increased by 5 per cent to 6.84 cents per share.
Global nutritionals put in a particularly strong performance during the year, with the optimum nutrition particularly notable.
The firm said major cost saving initiatives had been implemented throughout the group that would continue in 2010 in Ireland.
In a separate filing, the company confirmed it was in talks to sell some of its businesses. Shareholder Glanbia Co-operative Society, which owns 54.64 per cent of Glanbia, has expressed an interest in acquiring Glanbia's Dairy Ireland operations its Irish property business, Group Business Services and related Irish joint ventures and associates.
The sale would require the approval of both the society's members and Glanbia shareholders.
"The discussions are underpinned by a clear strategic rationale and represent a unique opportunity to transform Glanbia," the company said in a statement today.
"For the society and its members such a transaction would offer the prospect of full ownership and control of the key strategic businesses that are closely aligned with their interests. For Glanbia, it would, in particular, increase the group's focus on international nutritional ingredients and cheese, significantly improve financial flexibility and enhances development of its successful growth strategy."
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