Interim Results - Part 1

Glanbia PLC
6 September 2000

PART 1
                                  Glanbia plc
                                Interim Report
                          Half-Year Ended 1 July 2000

Summary

- Difficulties in the UK meat and food service sectors, indicated  in  our
  announcement at the AGM in May, have seriously impacted results for the  
first six  months  of 2000. These difficulties are continuing and have  more 
than offset   a   satisfactory  performance  in  the  Group's  other 
businesses.  Consequently the out-turn for 2000 will be below current market
expectations.

- The Group is actively correcting operational aspects of this under-
  performance. In addition a number of important initiatives are underway to
  tackle wider market and structural issues impacting the Group.

- Operating  profit  from  continuing  operations  declined  by  29.5%  to
  IR£19.31m / Eur24.52m.

-  Profit  before  tax (after exceptional items) increased  to  IR£8.60m  /
  Eur10.92m compared to a loss before tax (after exceptional items) of
IR£53.65m / Eur68.12m in the first half of 1999.

- Profit before exceptional items and tax declined by 53.3% to IR£9.06m  /
  Eur11.5m.

- Interest costs declined by 32.6% to IR£10.36m / Eur13.15m.

- FRS3  earnings per share were IR0.61p / Eur0.77c (1999 loss  per  share:
  IR21.45p  /  Eur27.24c). Adjusted earnings per share declined to  IR0.78p  /
  Eur0.99c (1999:IR3.54p / Eur4.50c).

- In  the context of current performance and the full-year outlook for the
  Group,  the  Board  has  declared a reduced interim dividend  of  IR1.40p  /
  Eur1.777633c (1999: IR2.35p / Eur2.983884c).

- Progress  has  been made in the implementation of the Group's  refocused
  strategy.  The  joint  venture with Leprino has been successfully  completed
  creating a dynamic new force in the European pizza cheese sector. In the
USA, cheese operations have been significantly expanded and additional
capacity to meet demand for advanced technology proteins in the nutrition
market will come on stream in the last quarter.

Commenting  on  the results, Mr Ned Sullivan, Group Managing  Director,  said,
'Glanbia  is a company in transition. We are committed to reshaping the  Group
around our refocused strategy. However the first half of 2000 saw two business
units  under  pressure primarily due to sectoral issues such as  raw  material
availability,  over-capacity and consolidation of competitors  and  customers,
which are continuing. Therefore, while strategy implementation is progressing,
management  attention  in  the  shorter  term  is  on  correcting  the  under-
performance and addressing wider market and structural issues.'


Results

Glanbia  plc  announces a 29.5% decrease in operating profit  from  continuing
operations  to IR£19.31m / Eur24.52m (1999: IR£27.37m / Eur34.75m).  Operating
profit  from discontinued operations (UK liquid milk) in 1999 was  IR£7.32m  /
Eur9.29m. The reduction in operating profit primarily reflects a disappointing
performance in the UK meat and food service businesses. This more than  offset
a  good  performance  in  the  Food  Ingredients  division  and  a  continuing
satisfactory result in Agribusiness.

Turnover declined by 11.0% to IR£981.87m / Eur1,246.72m (1999: IR£1,103.36m  /
Eur1,400.97m), principally reflecting the impact of disposals in June 1999.

Profit  before  exceptional items and tax declined  by  53.3%  to  IR£9.06m  /
Eur11.5m (1999: IR£19.41m / Eur24.65m).

Profit  before tax (after exceptional items) increased to IR£8.60m / Eur10.92m
compared  to  a  loss  before tax (after exceptional  items)  of  IR£53.65m  /
Eur68.12m in the first half of 1999.

The  net charge for exceptional items for the half-year is IR£0.46m / Eur0.58m
compared to a net charge of IR£73.06m / Eur92.76m for the same period in 1999.
A  provision of IR£6.57m / Eur8.34m has been made relating to additional costs
arising in 2000 due to the merger-related milk price guarantee. This has  been
mainly  offset  by exceptional gains totalling IR£6.12m / Eur7.77m  associated
with  the  sale  of certain investments and the disposal of the  Camolin  lamb
business.

Adjusted   earnings  per  share  declined  by  78.0%  to  IR0.78p  /  Eur0.99c
(1999:IR3.54p  /  Eur4.50c). FRS3 earnings per share increased  to  IR0.61p  /
Eur0.77c  compared to a loss per share of IR21.45p / Eur27.24c for  the  first
half of 1999.

The  interest  charge  declined  by  32.6% to  IR£10.36m  /  Eur13.15m  (1999:
IR£15.38m  /  Eur19.53m), reflecting the disposals in June 1999  and  improved
working  capital  management. Non-equity minority interest, which  relates  to
Preferred  Securities and Preference Shares, was IR£5.36m  /  Eur6.80m  (1999:
IR£4.95m / Eur6.29m).

An  interim dividend of IR1.40p / Eur1.777633c per share is to be paid  (1999:
IR2.35p  /  Eur2.983884c), reflecting current Group performance and  the  full
year outlook.

Capital  employed was IR£211.00m / Eur267.91m (1999: IR£224.32m / Eur284.83m).
Net  borrowings  at  1  July  2000 were IR£344.63m /  Eur437.59m  compared  to
IR£348.13m / Eur442.03m at the half -year in 1999.

In  August  the  Group completed a joint venture agreement with Leprino  Foods
(USA)  to  strongly grow market leadership and penetration  in  the  expanding
European pizza cheese market. As part of the Joint Venture Leprino has taken a
49%  interest  in  Glanbia Cheese Limited and has licensed  exclusive  use  of
Leprino's patented and proprietary mozzarella production technology in  Europe
to Glanbia Cheese.

The  consideration paid by Leprino was IR£27.50m / Eur34.92m in cash. The  net
surplus on the transaction is expected to be IR£15.0m / Eur19.05m and will  be
treated as an exceptional item in the Group's 2000 profit and loss account.

Review of Operations

Food Ingredients

The  Food  Ingredients Division comprises the USA and Irish cheese  businesses
and  dairy ingredient operations, which supply the international nutrition and
food  processing sectors. It had a strengthened performance in the first  half
of  2000, primarily due to improved international dairy markets and continuing
operational  efficiencies. Operating profit improved by 31.8% to  IR£12.98m  /
Eur16.48m  (1999: IR£9.85m / Eur12.50m) while turnover increased by  18.5%  to
IR£345.20m / Eur438.31m (1999: IR£291.42m / Eur370.03m).

The  USA business performed strongly with the successful commissioning of  the
new cheese and ingredients facility at Gooding, Idaho. Sales volumes are ahead
of  plan.  US  cheese  prices in the first half of the year  were  lower  than
anticipated  due  to expanded output in the sector but the impact  was  mainly
compensated by strong demand for dairy proteins. Further investment  has  been
made  to expand output of advanced technology proteins to meet demand  in  the
nutrition  sector and the additional capacity will be on stream  in  the  last
quarter of 2000.

Performance  in  the Irish operations improved significantly,  assisted  by  a
strong  international  market  for  dairy proteins,  further  improvements  in
operating  efficiencies and further volume growth in formulated  products  and
specialised ingredients.

Consumer Foods

Consumer  Foods consists of businesses engaged in the processing and marketing
of  dairy and meat products primarily through retail and food service channels
in  the UK and Ireland. Profitability was impacted in the first half mainly by
issues  in  the  UK  meats and food service businesses. An operating  loss  of
IR£0.98m  / Eur1.24m was incurred compared to an operating profit of IR£10.43m
/  Eur13.25m in 1999 (excluding discontinued operations). Turnover declined by
5.9% to IR£523.55m / Eur664.77m (1999: IR£556.63m / Eur706.77m).

Irish  chilled foods operations had a satisfactory first half despite  intense
competitor  activity, with good progress being made in brand  development  and
range  extensions. Volume growth was achieved in major product categories.  In
recent  weeks  this  business  has incurred additional  costs  in  maintaining
service  levels  to customers due to an unofficial strike at its  distribution
facilities.

The  Irish liquid milk business has made significant progress since 1999  with
the   re-organisation   programme  completed  and  a  satisfactory   operating
performance now being achieved. Good progress has also been made in addressing
costs.  Long-standing margin issues have also been tackled,  the  benefits  of
which will be apparent in 2001.

Irish  pork operations performed below expectations due to a shortage  in  pig
supplies  and  high  prices  relative to returns from  international  markets.
Market conditions have improved in the second half of the year.

The  Camolin  lamb  plant  was  sold in June as part  of  business  refocusing
associated with Group strategy.
In the UK, retail cheese operations had a satisfactory start to the year in  a
difficult market environment. The pizza cheese business continues to deliver a
good operating performance and sales volumes are strong. However, the strength
of sterling versus the Euro impacted margins in the first half of the year.

The  UK  Fresh  Meats  business had a good result in the  period,  maintaining
profitability.

The UK sliced cooked meats business was impacted by a combination of UK retail
demand  for  British quality assured pork and a short supply of British  pigs,
with  consequent  higher  raw material prices. This business  is  expected  to
improve performance in the second half.

In  the  UK food service business, the problems associated with the changeover
to  new facilities have now been resolved. However, operating margin is  being
seriously   impacted   by  intensified  marketplace  competition   driven   by
consolidation  of  both  customers and competitors.  Management  focus  is  on
addressing operating efficiencies and aggressively pursuing new business.

Agribusiness

The Agribusiness Division had a satisfactory performance in the first half  of
2000.   Turnover  declined  marginally  to  IR£113.12m  /  Eur143.64m   (1999:
IR£116.22m / Eur147.57m). Operating profit was IR£7.31m / Eur9.28m compared to
IR£7.09m / Eur9.00m in 1999. While demand for feed and fertiliser was slightly
reduced  due  to  weather factors, improved returns from  the  Division's  pig
production operations assisted overall performance.

Strategy

Glanbia  has  made progress in implementing its refocused corporate  strategy.
The formation of the joint venture with Leprino Foods in early August provides
access  to leading edge proprietary technology and releases further investment
capital  to enhance market share in the growing European pizza cheese  market.
The  completion of the $33 million investment in the Gooding, Idaho cheese and
ingredients facility strengthens Glanbia's position and competitiveness in the
growing  American cheese market. Further investment has been  made  to  expand
output  of  advanced  technology to meet demand in the  nutrition  sector.  An
investment in a new internet based exchange for food ingredients which  became
fully  operational  in early August offers an opportunity  to  develop  a  new
global  route  to  market  for  many of the  Group's  dairy  based  ingredient
products.

The  exit  from the sale and marketing of lamb products also assists portfolio
reshaping around the corporate strategy.

Dividend

In  the  context of performance and the full-year outlook for the  Group,  the
Board  has  decided to reduce the interim dividend to IR1.40p  /  Eur1.777633c
(1999:  IR2.35p  /  Eur2.983884c). It will be  paid  on  18  October  2000  to
shareholders on the register on 22 September 2000.

Outlook

As  indicated  in  the  announcement at the Group's  AGM  in  May,  despite  a
satisfactory start to the year for most business units, profits in  the  first
half  were impacted primarily by difficulties in the Group's UK meat and  food
service  operations. These businesses continue to face performance  issues  in
the second half of the year. Consequently, the out-turn for the full year will
be below current market expectations. Management is focusing on correcting the
under-performance and initiatives are also continuing to address wider  market
and structural issues impacting the Group.

It is expected that the combination of these initiatives and improved trading
in the Group will deliver an enhanced result for 2001.


Tom Corcoran
Chairman


                                               
                                          Wednesday, 6th September 2000
For further information, contact:              

Michael  Patten,  Director of Communications,  
Glanbia plc
Tel: [phone] or 087-2414502

Jim Milton, Murray Consultants                 
Tel: [phone] or 086-2558400

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