Ireland’s largest dairy exporter, Ornua, reported a 14.8% rise in operating profits to €40.4m for the year ended 29 December 2018. Group turnover increased marginally (0.6%) to €2.1bn. Group earnings (EBITDA) increased 12.5% to €60.5m.
The co-op, which owns the Kerrygold brand, purchased a record 342,000t of Irish dairy products from its members.
This is the milk equivalent of 3.4bn litres sold through Ornua’s 110 global markets.
Ornua increased its total year-end bonus to members by 27% to €19m.
Ornua CEO John Jordan said: “The strong performance was achieved against a challenging global environment characterised by highly volatile butter prices, drought conditions in Europe, economic uncertainty due to Brexit and global trade wars.”
Kerrygold
The group said Kerrygold had a standout year.
It saw a 25% volume growth in the US during the year, helping make Kerrygold butter the number two butter brand there. It remains the number one butter brand in Germany.
Ornua’s ingredients business, which offers cheese and dairy solutions to global food manufacturers and the food service sector, delivered strong results.
It also said its US ingredients business delivered record growth, with double-digit volume growth.
The late production season and Brexit planning resulted in the group carrying additional stock over the year-end, bringing net debt to €110.1m compared to €0.3m net cash in the prior year.
Brexit
Ornua said it has been preparing for the potential impact of Brexit for almost two years, but that planning where the outcomes are still unclear has been a significant challenge.
It said it has been working closely with key UK customers and suppliers to ensure security of supply and to minimise the short-term impacts on business.
It has developed sales channels across a diverse range of markets and will continue to invest to minimise the potential impacts of any Brexit deal.
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Ireland’s largest dairy exporter, Ornua, reported a 14.8% rise in operating profits to €40.4m for the year ended 29 December 2018. Group turnover increased marginally (0.6%) to €2.1bn. Group earnings (EBITDA) increased 12.5% to €60.5m.
The co-op, which owns the Kerrygold brand, purchased a record 342,000t of Irish dairy products from its members.
This is the milk equivalent of 3.4bn litres sold through Ornua’s 110 global markets.
Ornua increased its total year-end bonus to members by 27% to €19m.
Ornua CEO John Jordan said: “The strong performance was achieved against a challenging global environment characterised by highly volatile butter prices, drought conditions in Europe, economic uncertainty due to Brexit and global trade wars.”
Kerrygold
The group said Kerrygold had a standout year.
It saw a 25% volume growth in the US during the year, helping make Kerrygold butter the number two butter brand there. It remains the number one butter brand in Germany.
Ornua’s ingredients business, which offers cheese and dairy solutions to global food manufacturers and the food service sector, delivered strong results.
It also said its US ingredients business delivered record growth, with double-digit volume growth.
The late production season and Brexit planning resulted in the group carrying additional stock over the year-end, bringing net debt to €110.1m compared to €0.3m net cash in the prior year.
Brexit
Ornua said it has been preparing for the potential impact of Brexit for almost two years, but that planning where the outcomes are still unclear has been a significant challenge.
It said it has been working closely with key UK customers and suppliers to ensure security of supply and to minimise the short-term impacts on business.
It has developed sales channels across a diverse range of markets and will continue to invest to minimise the potential impacts of any Brexit deal.
Read more
Kerrygold butter celebrates 20 years of success in the US
Cheddar bill at €55m in new UK tariff regime – Ornua
May seeks ‘short-term’ extension to Article 50
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