Glanbia whey ahead of expectations

This helped Glanbia increase total underlying revenues by 4.8 per cent to €2.9bn, which translated into operating profit growth of 9.4 per cent to €199m. Margins expanded by 30 basis points to 6.9 per cent, powered by growth in US Cheese and Global Nutritionals, which more than offset declines in the Irish dairy business.

In fact, 51 per cent of Glanbia's revenue was generated from US Cheese and Global Nutritionals, accounting for 73 per cent of earnings. It also had the highest operating margin, which grew 80 basis points to 9.7 per cent.

Performance at the Irish dairy business might not have been as stellar, but revenues were still up 2.4 per cent to €631m, though operating profits fell 14 per cent to €20.4m. Indeed, volatile global dairy markets led Glanbia to dispose of 60 per cent of its Irish dairy processing business, Dairy Ingredients Ireland, to Glanbia Co-operative Society, to form Glanbia Ingredients Ireland. This reduces Glanbia's overall exposure to global dairy markets, allowing it to focus on areas of higher growth, namely US Cheese and Global Nutritionals.

Broker Davy Research expects of 55.6¢ in 2013, a 4 per cent rise on previous forecasts.