Glanbia today said the group is performing in line with expectations and it reiterated its full-year guidance of between 5 per cent and 7 per cent growth in adjusted earnings per share.

Group revenue grew 1.9 per cent compared to the first three months of 2011 but volume was down 1.5 per cent. Overall pricing was up 3.4 per cent.

In an interim management statement issued ahead of its agm in Kilkenny, Glanbia said it was operating in a "more challenging operating environment" this year.

However, the group said it still expected to deliver half-year earnings which would be broadly similar to those declared for the same six month period in 2011.

Glanbia said revenues from its Irish division declined by 4.6 per cent during the first three months of the year.

It forecast that first-half revenues from its Irish division would be broadly in line with last year but operating profits and margins would be lower.

The food group said international demand for dairy products remained solid during the first quarter, supported by demand from developing economies. But it added that prices for most dairy categories had weakened, mainly due to an oversupply of milk resulting from sustained good weather in most milk producing regions.

"Glanbia is successfully driving growth in nutritionals and the depth and strength of the portfolio in these dynamic growth sectors positions Glanbia well for the future," it said.