Dairy co-operative Ornua, which owns Irish butter company Kerrygold, has published its operating and financial results for the year ending 30th December 2023, reporting a group turnover of €3.4 billion.
The co-operative reported a “solid trading performance” as it boasted a group turnover of €3.4 billion. Its group earnings before interest, taxes, depreciation and amortisation (EBITDA) was €149.8 million, down from the 2022 rate of €157 million.
Ornua said its operating profit was €116.8 million, a decrease on the year from €127.2 million in 2022 and a change of -8.2%. However, its net assets increased by 2.3% on the year, from €728.1 million in 2022 to €745.1 million in 2023.
Donal Buggy, interim CEO of Ornua, said: “I am pleased to report a solid business performance for 2023, with group turnover of €3.4 billion, representing a stable result year-on-year following a record sales performance in the previous year.
“Ornua responded dynamically to significant instability in the global trading environment by remaining focused on our strategy and on our commitment to deliver for our customers, our member co-operatives and Irish farming families.
“Group EBITDA and operating profit, pre Ornua value payment, were below 2022 at €149.8 million and €116.8 million respectively. This was reflective of the challenging market conditions that the Irish dairy industry faced in 2023.”
Buggy said: “Ornua continued to prioritise value returns to our member co-operatives, paying strong product prices for premium Irish dairy products amounting to €1.6 billion. We were pleased to complete a major €40 million development at the global home of Kerrygold – Kerrygold Park – which brings the total production capacity of our flagship butter facility to approximately one million retail packs of butter per day.
“Looking ahead, while there is continued uncertainty around the impact of macroeconomic factors on already challenging global market conditions, we remain optimistic about the future and focused on achieving sustainable growth in key markets.”
Operational performance
The co-operative said that despite the continued impact of inflation, price fluctuation in branded categories and an “unprecedented” level of market competition, Kerrygold maintained its position across multiple markets. In the US, Kerrygold continued to experience volume sales growth, stating that future growth of Kerrygold in key international markets will be supported by the recent expansion of Kerrygold Park, completed in 2023.
The global business also recorded a “balanced” performance in the year. It said despite challenging market conditions, Ornua maintained a “focus on close collaboration” with its customer base to “innovate for the future” and strengthen the standing of the business as a supplier of dairy ingredients solutions.
Outlook
Ornua said it was “well-positioned to leverage its experience, agility and resilience” to deliver consistent growth during challenging times.
It highlighted that in 2023, the co-operative introduced a new five-year strategic plan, ‘Path to Prosper‘, which aims to drive “continued sustainable growth” for Ornua and ensure the business meets the needs of its customers, member co-operatives and Irish farming families.
