Ornua, which exports 60% of Irish dairy products, saw an 18% rise in profits (EBITDA) to reach €43.1m last year.

Operating profits surged 46% to €26.6m as it saw turnover on a like-for-like basis increase 9% to €1.75bn, once its US distribution business was excluded. Ornua sold its DPI business in December 2015.

The business, which is owned by the majority of dairy co-ops, ended the year with net cash of €57.2m, compared to net debt of €17.3m at the end of 2015.

Irish products

Irish product purchases rose by 7%, year-on-year, outstripping the rise in Irish milk supply of 4%. Over the last four years, Irish purchases have grown by 33%. The co-op said that this demonstrates Ornua’s strong product price returns.

A members’ bonus of €14.5m was declared, which included a final bonus from the gain on disposal of DPI Specialty Foods of €5m.

This is on top of the €15m already paid for the sale of DPI.

In May 2016, Ornua suspended the monthly Ornua milk levy in recognition of the on-farm challenges experienced by dairy farmers due to the global dairy market downturn.

Investments

During the year the group invested €51m, including €6m in brand development. Ornua has net assets in excess of €500m. Kerrygold reached global retail sales of €900m during the year, driven by a 20% volume increase in the US.

It was a busy year for the co-op where it started production at its 50,000t butter production and packing facility in Mitchelstown, Co Cork, commissioned a cheese plant in Riyadh and integrated its Shanghai-based Ambrosia Dairy into the business. It also acquired US powder ingredients business, CoreFX.

Volatility

Kevin Lane, CEO of Ornua, said: “Excellent performances in established markets such as Germany and the US were accompanied by continued expansion in our developing markets of Africa, China and the Middle East. These results were achieved against a backdrop of significant market volatility and political uncertainty.”

Earlier this year, Ornua acquired F.J. Need (Foods), a UK-based cheese ingredients company, strengthening Ornua’s presence in the UK ingredients sector.

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