This content is not available in your region

Ireland's Glanbia says tariffs could disrupt dairy prices, growth plans

Access to the comments Comments
By Reuters
Ireland's Glanbia says tariffs could disrupt dairy prices, growth plans
FILE PHOTO: A sign hangs over cows during milking at Beacon Farm near Birmingham, Britain August 11, 2015. REUTERS/Darren Staples/File Photo   -   Copyright  Darren Staples(Reuters)

DUBLIN (Reuters) – The imposition of trade tariffs around the world could cause some disruption to dairy prices and affect growth objectives Irish nutrition company Glanbia <GL9.I> laid out in May, its finance director said on Thursday.

Glanbia, a supplier of protein supplements for gym goers, wants to boost revenues by over a third to 5 billion euros (£4.51 billion) by 2022 and target average earnings per share (EPS) growth of 5-10 percent on a constant currency basis through that period.

It reiterated its guidance for 5 to 8 percent EPS expansion this year after a 7 percent dip in the first half came in line with expectations, but noted in its results that further trade tariffs may negatively impact its five-year growth plan.

“The area that we are looking at quite closely is what is happening on the global trade front, particularly with discussions around tariffs etc, that could cause some disruption (to dairy prices),” Mark Garvey told Reuters in a telephone interview.

“At this point, we’d say dairy prices are relatively stable and we’d see that for the next number of months with an eye on the impact on global trade.”

Shares in the Kilkenny-based firm were 3.5 percent lower at 14.59 euros by 0815 GMT.

While Garvey said Glanbia’s primary exposure to tariff risks was through dairy prices, some of its products had already been affected by the imposition of specific duties.

He highlighted trade that one of its joint ventures carries out from the United States to Mexico and sales to China via its ingredients business as areas Glanbia is monitoring closely.

“For some products, not very material at this point, we have seen tariffs come in. As those kicked in from July, we talked to customers and suppliers and were able to mitigate them,” Garvey said.

(Reporting by Padraic Halpin; editing by David Evans and Dale Hudson)