Dairygold has delivered a record turnover of €1.02 billion in 2019, reflecting an increase of €27.5 million (2.7%) on the prior year.
The Irish dairy co-operative reported an earnings before interest, taxes, depreciation, and amortization (EBITDA) of €56.6 million, an increase of €8 million (16.4%) on the prior year, it's recent 2019 annual report showed.
The operating profit for the year of €35.8 million, reflected an increase of €6.9 million (23.9%) year on year.
According to the report, at year-end, the net asset value of the business was €373 million, an increase of €35.1 million (10.4%) on the prior year.
Dairygold invested a total of €84.8 million of cash in capital projects over the year.
The year-end net bank debt of €157.9 million, an increase of €46.5 million (41.8%), driven by capital investment, remains at a manageable level given the scale of the organisation and the levels of profitability being generated, the company said.
According to a statement, 2019 was a milestone year for milk production, with Irish dairy farmers producing a record 7.95 billion litres of milk.
Dairygold milk supplies were 1.39 billion litres, an increase of circa 50 million litres or an increase of 3.73% on the prior year, it added.
"Favourable weather improved grass growth which boosted fodder reserves and allowed a return to more normal feed consumption levels as compared to 2018," said John O’Gorman, chairman, Dairygold in a statement.
2019 also saw a surge in Irish milk production driven by 'very strong growth' in milk supplies in the first half of the year.
"Returns from global dairy markets through the year continued to be varied. After a strong start to the year, prices weakened, only to strengthen again in the final quarter," O’Gorman added.
"The Dairygold Board sought to manage this volatility by reflecting any market increases early and delaying milk price reductions when the markets weakened."
Headquartered in Mitchelstown the company noted that the current business environment is very challenging with Brexit, Trade Wars and Dairy Alternatives all having an impact on the dairy industry.
"However, we are now dealing with a much more significant global event, COVID-19, which is an ever evolving situation, that has the potential to have a significant negative personal health and financial impact on its members and the society," O’Gorman said.
O’Gorman highlighted that the board is very focussed on maintaining business continuity, while cognisant of the safety of all its Stakeholders, including members and employees.
"I cannot stress enough the importance of following the guidelines being provided by the HSE, the Government and Dairygold, to minimise the impact of COVID-19 from both an individual and society perspective," he added.
The dairy firm said that it is currently concluding a €130 million capital investment programme which is required to deliver the increased processing capacity required to manage milk growth forecasts to 2023.
"The decade has seen circa €425 million invested by Dairygold and our Strategic Partners in capital on Dairygold’s manufacturing sites which includes three new Milk Powder Factories, a new Cheese Factory in Mogeely and an enhanced Cheddar Factory in Mitchelstown, along with a complete regeneration of Whey Processing," said Jim Woulfe CEO, Dairygold.
"In addition to the increased processing capability, these investments have also delivered advanced technology and efficiency."
© 2020 Checkout – your source for the latest Irish retail news. Article by Donna Ahern. Click sign-up to subscribe to Checkout.