Ornua Foods UK, the subsidiary business of Irish dairy co-op Ornua charged with the sale of its stable of branded dairy products in the UK market, saw its profits fall sharply last year in what it described as a “highly challenging and volatile” market.
Accounts filed this week for Ornua Foods UK show that operating profits for the business slumped by almost a third (-32%) last year to just under £5.9m (€6.4m) as operating profit margins were squeezed from 2.7% in 2018 to a slender 1.7% last year.
Pre-tax profits in the business plunged almost 40% to £4.1m (€4.5m) despite a 10% increase in sales to £353.7m (€388m). Ornua said the volume of product sold was up 10% last year.
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Ornua attributed the reduced profits to investments made in a business transformation programme which it says will deliver efficiencies and improved margins in the coming years. Overall, the asset value of Ornua’s UK business increased to £35.7m (€39m).
Ornua Foods UK is the largest supplier of British and Irish cheese in the UK market and its key customers are the large UK supermarkets.
The company employs almost 680 staff and its key brands in the UK market are Pilgrim’s Choice and Kerrygold. Pilgrim’s choice is the number two cheddar brand, while Kerrygold is the number three block butter brand in the UK.
The company also noted that it has seen a sharp increase in demand for its products since the COVID-19 lockdown but added that it does not expect this increased demand to be sustained.
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Ornua Foods UK, the subsidiary business of Irish dairy co-op Ornua charged with the sale of its stable of branded dairy products in the UK market, saw its profits fall sharply last year in what it described as a “highly challenging and volatile” market.
Accounts filed this week for Ornua Foods UK show that operating profits for the business slumped by almost a third (-32%) last year to just under £5.9m (€6.4m) as operating profit margins were squeezed from 2.7% in 2018 to a slender 1.7% last year.
Pre-tax profits in the business plunged almost 40% to £4.1m (€4.5m) despite a 10% increase in sales to £353.7m (€388m). Ornua said the volume of product sold was up 10% last year.
Ornua attributed the reduced profits to investments made in a business transformation programme which it says will deliver efficiencies and improved margins in the coming years. Overall, the asset value of Ornua’s UK business increased to £35.7m (€39m).
Ornua Foods UK is the largest supplier of British and Irish cheese in the UK market and its key customers are the large UK supermarkets.
The company employs almost 680 staff and its key brands in the UK market are Pilgrim’s Choice and Kerrygold. Pilgrim’s choice is the number two cheddar brand, while Kerrygold is the number three block butter brand in the UK.
The company also noted that it has seen a sharp increase in demand for its products since the COVID-19 lockdown but added that it does not expect this increased demand to be sustained.
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