Aurivo reported operating profits up 10% to €3.9m for the financial year ended 31 December 2017. The co-op saw turnover rise by 9% to reach €426.4m. Cashflows were strong in the period, which saw net debt fall by €11m to less than €5.7m - a fall of 66%. Aurivo invested a further €4m in the business, bringing total investment in the co-op to almost €29m over the past seven years. The performance was boosted by strong dairy markets during the year, along with an increase in volumes produced. The co-op processed a record 420m litres, 8% more than 2016. The co-op said the majority of this growth in supply was coming from a combination of existing suppliers as they expanded production. It said that while there have been a small number of new entrants over the last number of years, these are usually larger farmers than average, which is also boosting supply.

Aaron Forde, chief executive, said: “2017 was a year of achievement based on meeting the needs and requirements of our members and customers, and a year of carrying out the necessary planning and development work to put in place the foundation blocks to ensure Aurivo’s continued growth and success.”

Chief executive Aaron Forde warned that as milk supply growth continues around the world this year, it will be one with significant volatility. He also adds that Brexit is an uncertainty for the business and the wider sector.

He said that while they continue to put in place plans to be as ready as possible for the inevitable fallout from the UK’s exit of the EU, he says that, “ultimately, the sector needs the Government to get the best possible deal for Irish food and agribusiness”.

Pat Duffy, chair of Aurivo, said: “Aside from issues outside of our control, we have a real sense of renewed confidence for 2018 and beyond. This is a truly efficient and effective business that is delivering for all its stakeholders. We have an ambitious plan for the future growth of the business, and the operational plan to deliver that is now well underway.”

By Division

Its consumer foods division, which accounts for 23% of the business, saw sales rise 12% to €99.1m on the back of greater volumes and rising prices. During the year it launched new flavoured milks and carried out a relaunch of its protein milk. The Connacht Gold brand continued to grow despite a very competitive market and rising butter prices throughout the year. The For Goodness Shakes protein drinks brand also continues to grow according to the co-op.

Dairy Ingredients, which accounts for one third of the overall business, had a very strong year, with sales up 41% to €143.5m. This was mainly driven by the increase in milk volumes along with strong dairy markets over the year. The co-op is midway through a €5m investment in its dairy ingredients facility in Ballaghaderreen, which it hopes to have completed in the next two years.

It launched a new brand of enriched milk powder for the Nigerian market called Forto. The powder is produced in Ballagaderreen and then exported and consumer packed in Ornua’s facility in Nigeria.

The agribusiness division, which includes the retail stores, feed and fertiliser business, reported an increase in sales of 5% to €102.1m. This was boosted by an 18% increase in feed sales helped by the expansion into Donegal and Northern Ireland. Fertiliser sales finished the year up 13% on 2016.

Its Homeland retail business continued its drive around customer focus and a new store was opened in Belmullet.

Its four marts saw sales rise 4% to €81.6m during the year.