Dairygold profits fall on back of dairy commodities downturn
Published 27/04/2016 | 14:26
Dairygold profits dropped by 34pc last year on the back of the global downturn in dairy commodities.
Operating profit at one of the country’s largest dairy processors fell by €9.4m to €19.2m as revenues fell by €63m.
The co-op, which is wholly owned by over 3,000 farmers, also subsidised milk price to the tune of over €20m in an effort to keep the price that farmers were paid above the break-even level of 26.5c/l.
However, management at the Mitchellstown-based processor maintained that the “solid financial performance” left the company well placed for further growth over the coming years.
The EBITDA earnings on a turnover of €785m was €41m, but the business’s asset value increased by €19.4m to €315.5m.
Bank debt increased by €25m to €96m, as Dairygold continue to invest heavily in adding extra capacity to their site at Mallow in Cork.
Over €50m was spent last year, bring total capital investment over the last seven years to €215m.
“In 2015, the society delivered a strong operational and solid financial performance, despite a very testing year for the dairy sector internationally and the need to support its members,” said the co-op’s CEO, Jim Woulfe.