KILKENNY BASED FOOD group Glanbia Plc has agreed to sell 60 per cent of its Irish dairy ingredients business in order to focus on the nutritional products that are driving growth.
Announcing its half year results, the company, which was formed in 1997 with the merger of Avonmore and Waterford Foods, said it will offload Dairy Ingredients Ireland on to Glanbia Co-op Society Ltd, the farmer led cooperative that owns 54.4 per cent of Glanbia. The society has agreed to reduce its shareholding in Glanbia Plc to 41.4 per cent in order to fund the investment, subject to a vote by its members.
The Dairy Ingredients business delivered 41 per cent of Glanbia’s revenue last year. It is the largest dairy processor in Ireland, with a milk pool of 1.6 billion litres that is processed into 180,000 tonnes of dairy ingredients.
The US Cheese and global nutritional business delivered 61 per cent of revenue, making nutritional products for body builders as well as cheese for the US market.
“The overall outlook for the group for the remainder of the year is positive,” group managing director John Moloney said.
Half year results show that revenue are up 1.6 per cent to almost €1.4 billion.
Glanbia makes a number of well known products in Ireland, including Yop and Kilmeaden.