Glanbia's sales hit by UK disposals

Turnover dropped last year at food giant Glanbia which also reported a 2 per cent drop in its operating profits to €91

Turnover dropped last year at food giant Glanbia which also reported a 2 per cent drop in its operating profits to €91.5 million.

Blaming weak international dairy markets, Glanbia said its turnover fell 11.8 per cent to €2.3 billion in the year to January 4th.

Operating profits were hit by an exceptional charge of €79.9 million resulting from the closure of Glanbia's British consumer meats business and the sale of its British food service operation.

The company said it had delivered a "solid performance delivered in challenging operating environment". A 5 per cent higher dividend of 4.76 cent has been declared by Glanbia.

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The company's food ingredients division saw a fall in turnover where profits fell from €59.4 million to €30 million.

Profits at the group's consumer foods division, accounting for over 50 per cent turnover and profits, more than doubled to €47.6 million, despite a drop in turnover due to the exit from British consumer meats and a fire at its Rooskey facility.

Group Managing Director, Mr John Moloney said: "Glanbia has delivered on its promise to shareholders to strengthen Group operational and financial performance during 2002".