Agri business Aurivo sees big rise in profits in ‘uniquely challenging’ year
AGRI business Aurivo, which has its headquarters in Sligo, reported a big rise in profits despite a “uniquely challenging year”, when it announced its financial results for last year on Thursday.
It achieved a record sales turnover of €488.7m, an increase of 9.4% on 2019 (€446.8m) and delivered an operating profit (before one off exceptionals) of €8.5m, an increase of 170% on the previous year (2019: €3.2m).
The co-op, which employs around 650 people across its consumer foods, dairy ingredients, retail stores, animal feeds and livestock trading businesses, also reduced its net debt from €18.8m to just €2.2m.
Aurivo exports to almost 50 countries in markets as diverse as Afghanistan, Africa, Central America, Costa Rica, Germany, Iraq and the United Kingdom. Commenting on the annual results, chief executive Donal Tierney said: “Aurivo has reported a strong and resilient set of results for 2020, in what was a uniquely challenging year. Against the backdrop of a global crisis, the hard work and agility of our employees, suppliers and members enabled the co-op to maintain essential supplies, services, and food products across domestic and global markets.
“As CEO, I am particularly proud of the very high service levels that have been provided across all business units.”
He said the Aurivo milk pool expanded by 5.5% in 2020 and despite initial concerns about the impact of Covid-19 and a noticeable fall in activity in the food service sector, overall demand for dairy held up well in 2020, with the decline in food service being countered by the surging demand in the retail sector.
The Aurivo average milk price for the year was 35.61cpl compared to 34.35cpl in 2019. Raymond Barlow, the Riverstown dairy farmer who was elected chairman of Aurivo in November 2020, said that in “an extraordinary year of volatility and global disruption”, Aurivo stayed on track to record “an impressive group business performance that enabled us to deliver for our shareholders and sustain and improve milk price in 2020”.
“Fully recognising that our farmers are facing numerous challenges, including increasing production costs and additional requirements, we are confident that the co-op has a robust, efficient, and sustainable business model to effectively deliver for all our shareholders, suppliers and customers for the years to come.”
Aurivo’s Consumer Foods business unit recorded sales turnover of €96.9m, an increase of 1.9% on the previous year (2019: €95.1m).
Aurivo’s Dairy Ingredients business performed well in 2020 with a 17% uplift in turnover in 2020 to €198m (2019: €169.2m). Designated as an essential retail and manufacturing business throughout the pandemic, Aurivo’s Agribusiness recorded a sales turnover of €127.9m, an 11.2% increase on the previous year (2019: €115m). Reporting a turnover of €65.9m (2019: €67.5m), the business adapted to the environment, in an effort to protect customers and employees, by moving to online auctions for the first time in its history, in May and June of 2020.