Bandon Co-op, one of the four west Cork co-ops, saw its profits increase by more than one-third in 2018 after a very strong financial year. Accounts filed with the Companies Registration Office (CRO) last week show the farmer-owned co-op made net profits of €7.3m last year – up 36% on the previous year.

Bandon saw its sales grow by 5% in 2018 to reach €163.7m. Operating profits almost doubled (+97%) in 2018 to just under €4.4m as profit margins expanded from 1.4% in 2017 to 2.7% last year.

On top of this, the co-op received just over €3.9m from its share of the profits in Carbery Group, the dairy processing company owned equally by the four west Cork co-ops, Bandon, Barryroe, Drinagh and Lisavaird.

Along with dividends from other investments, external income helped boost Bandon’s pre-tax profits to more than €7.7m in 2018, which is 34% ahead of the previous year.

Net assets

Net assets in the business increased 10% by year-end to €91m.

Founded in 1903, Bandon Co-op collects about 85m litres of milk every year from its 255 farmer suppliers and employs more than 350 people across its dairy packaging, agri-stores and retail businesses. The co-op also buys in excess of 15,000t of grain annually from local tillage farmers.

Bandon owns a 42% stake in Clona Dairy Products, the Clonakilty-based distributor of liquid milk, consumer foods and foodservice dairy products.

The accounts show that Bandon paid out close to €590,000 in supports to its farmer members for feed and fertiliser. Bandon put aside a further €1.3m for its price volatility support fund, bringing the total fund to just over €1.4m.