Food conglomerate Glanbia expects earnings for 2009 to be at the lower end of the scale, as weak consumer sentiment drives competition in the market.
In an interim management statement this morning, the group said it had performed "broadly to plan". However, adjusted earnings per share for the year are expected to be between 30 to 31 cent, the lower end of forecasts.
Glanbia said results for its dairy segment in Ireland would be considerably lower overall than in 2008, as already predicted.
Although the Irish food retail market remains challenging, the company said it expected its consumer products division to deliver a "reasonable performance". Difficulties in farming would translate into a weaker agribusiness sector this year, it said.
A deterioration in the performance of its dairy ingredients unit is being blamed for the forecast year-on-year decline in adjusted earnings per share for the group.
"The group is continuing to focus on delivering sustainable cost reductions and a review of the competitiveness of Dairy Ireland is currently underway," the statement said.
Meanwhile, revenues for US cheese and global nutritionals sectors are expected to be below 2008. However, a robust performance from US cheese in what the company described as "volatile markets" and a good result from the nutritionals division could deliver a "modest improvement" in operating profit and operating margin.
Weak consumer sentiment and uncertainty in currency and financial markets resulted in a cautious outlook for 2009. The group welcomed a recent uplift in global dairy markets is welcome, but warned it was still early days.
Share in the group fell 2.4 per cent to €2.80 in early trade on the Dublin market.
