GLANBIA REITERATED its outlook for 2010 yesterday as the company reported a strong second half performance, boosted by improved global dairy markets and good demand for its nutritional products.

However, the company said that the Irish consumer food market remains challenging, warning that its consumer products business would see lower results than in 2009.

Nonetheless, profit recovery in ingredients would mean that its Irish dairy division would be strongly ahead for the full year after a very difficult 2009, the company said in its interim management statement.

The Irish dairy division accounts for 44 per cent of Glanbia’s overall revenue, and 25 per cent of operating profit.

The company’s US cheese and global nutritionals business were performing in line with expectations in the second half the company said, though overall operating profit margin is expected to be lower in 2010. The division’s operating profit is expected to be ahead of 2009’s performance, underpinned in particular by the performance of the nutritionals business.

While the US cheese business has benefited from higher retail prices, this had been offset by refurbishment costs on a US cheese plant in the first half of the year, the company said, as well as higher milk price premiums.

Joint ventures and associates are continuing to have a good year, the company said, bolstered by solid performances by Southwest Cheese in the US and the company’s UK pizza cheese project.

Overall, the company is projecting growth in earnings per share of 20 per cent for the full year in line with guidance.

Analysts said that yesterday’s update was in line with expectations. Glanbia’s share price closed up 1.5 per cent at €3.30.