Turnover was up 6.9%, year-on-year, at Ornua as Irish dairy farmers produced more milk and shareholder members of Ornua sold more product through Ornua. Irish dairy farmers ultimately are shareholders in Ornua via member co-ops Glanbia, Dairygold, Lakeland Dairies, Carbery, Arrabawn, Aurivo, Tipperary and North Cork Co-op. Today Ornua outlined financial results for year ending December 2021.

The company reported Group earnings (EBITDA) was up to €177.4m from €176.1m (+0.7%) when the numbers are calculated before exceptional items and pre Ornua Value Payment, which was €78m in 2021.

Operating profit

Ornua say Group operating profit was up to €153.7m from €151.8m (+1.3%) again when the numbers are calculated before exceptional items and pre the Ornua Value Payment.

In 2020 Ornua were sitting on a cash pile of €144m, but this was reduced during 2021 and the company ended 2021 with €7m debt. The balance sheet is strong with net assets rising from €603m to €671m in 2021.

During the year Ornua doubled its footprint in the US market with the acquisition of Whitehall Specialties Inc announced in October 2021. Ornua were also granted approval for a €40 million expansion of Kerrygold Park in Michelstown, Co Cork to meet the growing global demand for Kerrygold butter.

Performance

Commenting on the 2021 performance John Jordan, CEO, Ornua said: “Ornua maintained a strong, stable, and sustainable performance year-on-year, as we marked our 60th year in business. Despite persistent challenges, we are pleased to report a 6.9% increase in turnover and a 1.3% increase in operating profit* for 2021. This performance delivers on our commitment to maximise returns to our member co-operatives and the 14,000 farmers who supply them, with a 13.5% increase in our Ornua Value Payment in the year.

It was another record year for Kerrygold, with volume growth up 12% on 2020. Kerrygold continues to be the fastest selling brand on supermarket shelves in Germany and is the no.2 butter brand in the US; a market serving 330 million consumers. Our Ingredients business also performed strongly as we completed the acquisition of US cheese ingredients business Whitehall Specialities Inc. The addition of these four facilities across Wisconsin and Pennsylvania unlocks substantial growth in both the US and in other markets as we enhance our innovation and manufacturing capabilities, as well as adding 450 new skilled professionals to our workforce.”

Full report and analysis in print and on farmersjournal.ie later.