Glanbia, the global nutrition group, reported a 5.2% rise in profits (EBITA) in its fully owned businesses to reach €284.9m for its 2018 financial year. Glanbia’s reported share of profit after tax (before exceptional items) from its joint ventures including Glanbia Cheese and Glanbia Ireland increased by €2.5m to €45.3m in 2018.

Total reported group profit fell 29% to €234m in 2018. However, once an exceptional gain of €98m mainly relating to a profit on disposal of its agribusiness and consumer foods business to Glanbia Ireland is stripped out, total group profits were up marginally.

Revenue, excluding joint ventures, increased 4.1% to €2.39bn. Margins expanded 10 basis points to 11.9%. Adjusted earnings per share increased 9% to 91.01c. Volumes increased 6.7% across the business. Prices fell 4.7% during the year. There was a 2.1% revenue contribution from acquisitions.

The group also announced that it has agreed to acquire Watson, a US-based non-dairy ingredient solutions business, for $89m.

Commenting on the results, Siobhán Talbot, group managing director, said the performance was largely driven by strong volume growth across the business, in particular in the branded portfolio of its performance nutrition business and its nutritional solutions business. She added that consumer demand for the group’s brands and nutritional ingredients remains strong.

Its performance nutrition business saw revenue growth of 9.5% constant currency and profit (EBITA) growth of 6.7% constant currency to reach €173.1m. Revenue declined 0.6% in its ingredients division (Glanbia Nutritionals). However, earnings (EBITA) grew 3% to €111.8m during the year.

The board is recommending a final dividend of 14.49c per share, which brings the total dividend for the year to 24.20c per share, a 10% increase on the previous year. This total dividend represents a return of €71.6m to shareholders.