Ornua, which owns and produces Kerrygold butter, has published its operating and financial results for the year ended 29 December 2018, revealing a 0.6% increase in turnover.
The group earned €2.08 billion in 2018, compared to €2.06 billion in 2017.
It’s strong performance continued as it saw its EBITDA increase to €60.5 million, up 12.5% on 2017, and its operating profit increased by 14.8% to €40.4 million.
Significant & Sustained Investment
Ornua said that its performance was achieved during ‘a period of significant and sustained investment across its facilities and brand portfolio’.
“This strong performance was achieved against a challenging global environment characterised by highly volatile butter prices, drought conditions in Europe, economic uncertainty due to Brexit and global trade wars,” John Jordan, CEO Ornua, said.
“The strength and impressive growth of Kerrygold allowed Ornua to pay a product brand premium of €18 million to our members for Kerrygold product.
“Following decades of investment in the Kerrygold brand by our members and Irish farmers, our focus is on protecting this premium positioning and delivering on our strategy to extend Kerrygold from a world-class butter brand into a world-renowned dairy brand.”
The Kerrygold brand had an excellent year, according to the group, as a combination of ‘top-quality milk, state-of-the-art member production facilities and a well-invested brand’ secured ‘phenomenal’ growth in key strategic markets.
The brand accelerated growth in the German market, where it is already the fasted selling product in the food and drink market, and enjoyed a 25% volume growth in the US, where it is the number two butter brand nationally.
The group said that it has developed sales channels across a diverse range of markets, hoping to minimise the potential impacts of any Brexit deal.
Jordan said that the group’s key focus for 2019 is to drive growth across its brand portfolio and food ingredients business.
The group said that the UK remains ‘a key strategic market’ for the group, adding that any change in the status quo will create competitive challenges for Irish dairy exports.
It said it was committed to delivering value to its members and will look to capitalise on ‘decades of investment’ in the brand in its established markets, including Germany, the UK, and the US.
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.