Ornua sales jump 9pc to €2.54bn in challenging dairy market
Kerrygold producer Ornua is confident of delivering strong returns in the face of a challenging dairy market after growing its sales by 9pc last year.
The group, formerly known as the Irish Dairy Board, increased its earnings before interest tax depreciation and amortisation (EBITDA) by 18pc to €58.8m.
Ornua's balance sheet increased in size by 21pc to €526.4m as turnover hit €2.54bn.
Chief executive Kevin Lane said it delivered growth in both new and existing markets in 2015, the first year after the removal of EU milk quotas.
"We are confident that, whilst recognising the challenging market conditions that exist, our business will continue to deliver strong returns and growth thereby enhancing value for the farmers we represent," Mr Lane said.
Ornua represents around 14,000 farmers said it must now face a supply glut whereby the supply of dairy products is outstripping demand.
One of Ornua's flagship labels Kerrygold delivered record sales of around €740m last year.
Ornua increased its product purchases from its members by 16pc last year and as a result has increased its annual bonus to its members by 17pc.
Members will receive an annual bonus of €14m, including a cash element of €10m.
Late in the year an additional special cash bonus of €15m was declared froma profit on the disposal of its majority stage in US distribution business, DPI Speciality Foods.