Dairygold co-op records retained profits of €8.1m
DAIRYGOLD co-op announced a jump in retained profits yesterday despite what the chief executive described as "the most difficult (year) in its history".
Retained profits for 2009 were €8.1m compared to a loss of €3.2m last year despite turnover dropping 19pc to €555m.
Borrowing increased nearly €10m to €77.9m for the year.
The borrowing increase was "a consequence of continued investment in the business, increased working capital requirements, incorporating acquisitions, and increased dairy and agri debtors," according to a co-op spokesman.
The fall in turnover was blamed on the slump in world dairy markets. Chief executive Jim Woulfe was pleased with the results but warned: "The business has significant borrowings which require a defined level of profitability to secure. . . the ongoing financing of the business.
"At a time when Irish businesses are facing severe challenges, and credit conditions are extremely tight, Dairygold has emerged from 2009 having improved its overall profitability during the year," he said.
Mr Buckley poured cold water on any talk of a possible transaction involving the co-op in the near future.
"We will not enter into any co-operation or co-processing arrangements unless we are convinced that they will deliver benefit to Dairygold members in terms of a higher milk price," said the chairman.
The company sees the beginnings of an upturn in the milk market but did not give any indication of a future rise in prices.
Milk prices are "determined monthly for the previous month's supply based on market returns," according to the company.