Aurivo has reported a 5% improvement in group operating profit in 2019, its latest annual report showed.
The Connacht Gold owner's turnover for the year was €446.8 million, an increase of 1% on its full-year 2018 (€443.8 million), according to its financial results for the year ended 31 December 2019.
In a statement, the argi business outlined that earnings before interest, taxes, depreciation and amortization EBITDA for the period was €8.9 million, compared to €8.2 million in 2019.
Capital Investment Projects
Last year, the company highlighted that it completed three significant capital investment projects in its Dairy Ingredients plant, animal feed mill and its liquid milk processing site.
Commenting Donal Tierney, who was appointed chief executive of Aurivo in January 2020, said: “As we near the halfway point of our 2022 strategy, Aurivo progressed from the planning and building stage to the implementation and realisation of significant capital investment in the co-operative."
"During 2019, we completed three significant capital investment projects – our new €26 million, five-tonne dryer at our dairy ingredients site; a €6 million investment in front-end processing at our liquid milk plant; and a €1.2 million investment in storage and out-loading facilities at our animal feed mill," he added.
According to the report, turnover in the company's Consumer Foods division decreased marginally in 2019 to €95.1 million, down from €98.8 million in 2018.
'This was due to a combination of lower market prices for cream and a slight reduction in private label volume,' the company said.
The company said that ut continued to develop its milk brands, Connacht Gold and Donegal Creameries, during the period and that it launched 11 new product lines across the key retailers in the liquid milk and spreadable butter categories.
Aurivo said that it invested €6 million in its liquid milk plant in Killygordon to increase front-end processing capacity and significantly improve energy efficiency.
The company also invested €0.5m in a new distribution hub for milk and butter in Achonry, Co. Sligo, 'which will further streamline our logistic operations for liquid milk and butter products.'
Five-year Investment Programme
The company said that its five-year investment programme is 'well and truly underway', with €37 million of the €48 million budgeted investment programme completed and installed, ensuring that Aurivo is well-positioned to take advantage of future market opportunities and continued growth in milk supply.
“We are beginning to reap the benefits of our five-year investment plan as capacity and capabilities have increased throughout our businesses," Pat Duffy, chairman of Aurivo said.
"These achievements will allow Aurivo to grow and develop in order to secure and strengthen the future of our co-op,” he added.
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.