The substantial profits came on the back of a turnover of €848 million, marginally up on 2013. EBITDA was up 4% (€1.8m) to €47.2m. Operating profit was in line with the previous year despite the significant drop in international dairy market prices.

Dairygold Chief Executive Jim Woulfe said; “The 2014 performance was noteworthy, particularly considering that it was achieved against a backdrop of an almost 50% fall in dairy market returns between February and year-end.”

Dairygold has been busy readying for the post quota era and last year alone invested €50.1m. The processor is on track for half a billion litres expansion post quota. Despite the significant investment during the year, net debt rose by a modest €10.7m to €71.6m.

The underlying strength of the 2014 performance is reflected in the net debt to EBIDTA ratio, which has marginally increased to 1.5:1 from 1.3:1 in 2013 against the backdrop of significant capital investment.

Dairygold with 3000 milk suppliers has almost 20% of the Irish milk pool. The co-op processed its highest ever volume of milk of almost 1 billion litres.

During the year Dairygold completed the €33.5 million expansion of its dairy processing site at Castlefarm, in Mitchelstown, which will enhance the co-op’s nutritional ingredients capability. The €83.5m investment at Mallow is progressing on schedule with full commissioning targeted for early 2016.

Dairygold Chairman James Lynch added: “We have a well invested and efficient processing business, delivering a consistently strong financial performance and paying leading milk and grain prices. Events beyond our control, such as market returns, will present challenges but the long term fundamentals for the industry are sound”.