- Independent auditors' report
- Consolidated income statement
- Consolidated statement of recognised income and expense
- Consolidated balance sheet
- Consolidated cash flow statement
- Company balance sheet
- Company statement of recognised income and expense and cash flow statement
- Notes to the financial statements
Notes to the financial statements
42.Related party transactions
The Group is controlled by Glanbia Co-operative Society Limited ('the Society'), which holds 54.6% of the issued share capital of the Company and is the ultimate parent of the Group.
The following transactions were carried out with related parties:
(a)Sales of goods and services
| 2008 Company €'000 | 2008 Group €'000 | 2007 Company €'000 | 2007 Group €'000 |
||||
|---|---|---|---|---|---|---|---|
| Sales of goods: | |||||||
| - Associates | - | 5,875 | - | 3,871 | |||
| - Joint ventures | - | 69,484 | - | 82,543 | |||
| - Key management* | - | 829 | - | 578 | |||
| - | 76,188 | - | 86,992 | ||||
| Sales of services: | |||||||
| - The Society | - | 212 | - | 187 | |||
| - Associates | - | 22 | - | 20 | |||
| - Joint ventures | - | 6,429 | - | 4,671 | |||
| - Subsidiaries | 17,651 | - | 11,684 | - | |||
| 17,651 | 6,663 | 11,684 | 4,878 |
Sales to related parties were carried out on normal commercial terms and conditions.
(b)Purchases of goods and services
| 2008 Company €'000 | 2008 Group €'000 | 2007 Company €'000 | 2007 Group €'000 |
||||
|---|---|---|---|---|---|---|---|
| Purchases of goods: | |||||||
| - Associates | - | 10,468 | - | 10,675 | |||
| - Joint ventures | - | 5,467 | - | 14,221 | |||
| - Key management* | - | 2,646 | - | 2,169 | |||
| - | 18,581 | - | 27,065 | ||||
| Purchases of services: | |||||||
| - Associates | - | 2,470 | - | 1,953 | |||
| - Joint ventures | - | 424,680 | - | 374,593 | |||
| - Key management* | - | - | - | 4 | |||
| - Subsidiaries | 2,139 | - | 1,702 | - | |||
| 2,139 | 427,150 | 1,702 | 376,550 |
Purchases from related parties were carried out on normal commercial terms and conditions.
(c)Key management compensation1
| 2008 Company €'000 | 2008 Group €'000 | 2007 Company €'000 | 2007 Group €'000 |
||||
|---|---|---|---|---|---|---|---|
| Salaries and other short-term employee benefits | - | 3,817 | - | 4,123 | |||
| Post-employment benefits | - | 624 | - | 582 | |||
| Share based payments | - | 645 | - | 159 | |||
| - | 5,086 | - | 4,864 |
1 Key management compensation includes Board of Directors and Glanbia Executive Committee.
(d)Year-end balances arising from sales/purchases of goods/services
| 2008 Company €'000 | 2008 Group €'000 | 2007 Company €'000 | 2007 Group €'000 |
||||
|---|---|---|---|---|---|---|---|
| Receivables from related parties: | |||||||
| - Associates | - | 447 | - | 42 | |||
| - Joint ventures | - | 1,983 | - | 6,715 | |||
| - Key management* | - | 139 | - | 88 | |||
| - Subsidiaries | 51,617 | - | 23,984 | - | |||
| 51,617 | 2,569 | 23,984 | 6,845 | ||||
| Payables to related parties: | |||||||
| - The Society | - | 1,148 | - | 930 | |||
| - Associates | - | 1,338 | - | 1,749 | |||
| - Joint ventures | - | 38,385 | - | 31,119 | |||
| - Key management* | - | 3 | - | 5 | |||
| - | 40,874 | - | 33,803 |
(e)Loans to Joint Ventures
| 2008 Company €'000 | 2008 Group €'000 | 2007 Company €'000 | 2007 Group €'000 |
||||
|---|---|---|---|---|---|---|---|
| Loan to Southwest Cheese Company, LLC | - | 6,930 | - | 6,971 | |||
| Loan to Milk Ventures (UK) Limited | - | 4,999 | - | - |
Glanbia Co-operative Society Limited approved the payment of a milk and grain bonus of €6.7 million to the suppliers of Glanbia plc for 2008 on 15 January 2009. Glanbia Co-operative Society Limited is the ultimate holding company of Glanbia plc. The cost of this milk/grain bonus top up will be borne by Glanbia Co-operative Society Limited.
During 2008, the Company disposed of 800,000 shares of its investment in One51 plc for a consideration of €3,139,000 to its ultimate parent company Glanbia Co-operative Society Limited.
- *
- Purchases, sales and related year end balances to key management refer to trading balances with Directors who are engaged in farming activities.