Belfast Telegraph

Irish Food giant books £34m tax benefit after rate cut

By John Mulligan

Irish food giant Glanbia - which owns a cheese factory in Co Down - has booked a €38.7m (£34m) tax credit due to President Trump's decision to slash the US corporate tax rate.

The reduction in the rate from 35% to 21% will also help push Glanbia's group-wide effective tax rate for 2018 to between 16% and 17.5%, compared to 17.6% during 2017.

Glanbia owns a factory which manufactures mozzarella cheese in Magheralin.

Revenue from Glanbia's wholly-owned operations was up 7% at €2.38bn (£2.1bn) for 2017 - but shares fell more than 5% yesterday, despite the solid results.

Chief executive Siobhan Talbot said that the fall in the shares was "somewhat surprising", and attributed it to likely concerns regarding foreign exchange headwinds.

"I think to the extent that it's anything, it's probably the US dollar piece. The dollar is going to do its own thing… but it has no impact on the fundamental strength and structures of our business."

She added: "For us it's really about driving forward the organisation strategically. We delivered all of our financial metrics. The reality is the market makes its own perspective on these things. Our organisation is really strong. We have a very strong balance sheet. We're very ambitious for the future."

Belfast Telegraph

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