Dairygold profits fall on back of dairy commodities downturn
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.