Profits drop in 'testing' year for Dairygold
Published 28/04/2016 | 02:30
Dairygold profits dropped by 34pc to €19.2m last year on the back of the global downturn in dairy commodities.
Chief executive Jim Woulfe described 2015 as a "testing" year for the group.
The decline came as its revenues fell over 7pc to €785m from €848m in 2014.
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 26.5 cent a litre.
However, management at the Mitchelstown processor in Co Cork maintained that the "solid financial performance" left the company well placed for further growth over the coming years.
Dairygold's earnings before interest, tax, depreciation and amortisation (EBITDA) slumped 12.5pc to €41.2m.
Bank debt increased by €25m to €96m, as Dairygold continues to invest heavily in adding extra capacity to its 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 Mr Woulfe.