DAIRYGOLD DELIVERS €17.5M OPERATING PROFIT DURING 2016
DAIRYGOLD, Ireland’s largest farmer-owned dairy co-operative, has reported another solid financial performance for 2016, against a backdrop of very weak returns from international dairy markets, especially in the first half of the year.
Dairygold recorded turnover of €756.1 million (2015: €784.9 million), delivering an EBITDA of €39.0 million (2015: €41.2 million). The farmer-owned co-operative achieved an operating profit of €17.5 million, (2015: €19.2 million), while increasing milk price support to its members to €25 million, up from €20 million in 2015. At year end the net asset value of the business was €307.6 million (2015: €315.5 million), while bank debt was reduced by €7.5 million to a prudent €88.7 million.
Dairygold continued its ambitious capital programme during the year, investing a further €15 million in the business, bringing the total investment over the past six years to €200 million. This investment established a state of the art sustainable milk processing platform across dairy sites at Mallow and Mitchelstown. The investment has increased processing capacity by 55%, enabling farmer members to fulfil their on-farm growth ambition but more importantly the business can now leverage its investments in infrastructure to avail of commercial opportunities.
Dairygold also strengthened its track record in building strong commercial partnerships with global food companies with the announcement of the planned development of the new Jarlsberg Cheese production facility in partnership with Norway’s largest dairy processor Tine SA.
Speaking about the Mogeely investment, Dairygold Chief Executive, Jim Woulfe said: “Our commercial partnerships with global food companies have been an avenue to significant value add for the business. We will continue to seek out strategic partnerships with leading global organisations that can leverage our best in class processing facilities to deliver more value added production for the business.”
He added: “Dairygold has successfully transitioned from the quota controlled production era to the more volatile, expansionary environment. We are now following a very clear strategic path. We have built a first class processing platform and realigned our organisational structure. We have invested in the people and capability and put the appropriate financing in place, to deliver on our value added commercial objectives. We are now on the cusp of leveraging these investments to deliver on our future strategy. Dairygold’s strategic growth ambitions are now specifically focused on developing value added nutritional opportunities, both through commercial partnerships and acquisition.”