The increase in profits, which rose by 9.2% to €192.8m, on revenues which were up 11.5% to €2.05bn was mainly driven by the ingredients business, Glanbia Nutritionals.

This division saw profits (EBITA) increase 11.6% to €64.4m on the back of revenue growth of 12.2% to €642.2m.

Once the effect of currency is stripped group profits grew 6.6%. Margins declined from 12.9% to 12.5% overall.

Siobhán Talbot, group managing director, said that Glanbia Nutritionals and Joint Ventures, which includes Glanbia Ireland, were the main drivers of growth in the first half.

Performance nutrition

She added that Glanbia believes second half earnings progression will also be driven by Glanbia Performance Nutrition where good organic growth is expected for the remainder of the year.

The performance nutrition division, which has been the main driver of growth in the past saw profits grow 3.1% (0.2% constant currency) to €83.9m on revenue growth of 7.6% to €543.5m.

There was a 6.2% contribution from the acquisitions of Amazing Grass and Body & Fit. Volumes declined 0.8% as a result of contract revenue declines while overall pricing was neutral.

Joint ventures

Joint ventures and associates delivered strong revenue and earnings growth of 23.1% and 84.8%, respectively.

This was driven by the disposal of 60% of Dairy Ireland, the consumer and agribusiness to Glanbia co-op which is now included as a joint venture with Glanbia co-op.

US Cheese, the largest producer of American-style cheddar cheese in the US, reported revenues up 2.4% to €356.7m in the period as a result of higher cheese pricing which offset some volume declines.

Consumer Products, which is now 40% owned by Glanbia co-op, delivered continued growth in the sales of value added milk in the period. However, margins were reduced due to increased milk and dairy product costs which resulted in a reduced performance.

Agribusiness

Agribusiness, which is also 40% owned by the co-op, delivered a reduced performance in the period. Increased animal feed and fertiliser volume was more than offset by lower pricing which led to a decline in margin.

The group’s financial position saw net debt at the end of June at €608m which was a decrease of €36m on the end-of-year net debt.

Glanbia reiterates its guidance of 7% to 10% growth for the full year.

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