Business Irish

Thursday 22 August 2019

Spread the news: Earnings and profits increase at Kerrygold owner

Operating profit at the Kerrygold owner increased by almost 15pc to €40.4m in 2018
Operating profit at the Kerrygold owner increased by almost 15pc to €40.4m in 2018
Ellie Donnelly

Ellie Donnelly

Ornua, Ireland’s largest exporter of dairy products, has recorded earnings before interest, tax, depreciation, and amortisation of €60.5m for 2018.

This represents a 12.5pc increase on 2017.

Operating profit at the Kerrygold owner increased by almost 15pc to €40.4m, according to annual results from the group.

The increase in earnings and profit was achieved during what Ornua described as “a period of significant and sustained investment” across its facilities and brand portfolio.

Meanwhile, revenue was up marginally to €2.08bn. 

The group, which sells 2.6 million packets of Kerrygold butter in the US each week, paid a total year-end bonus of €19m to its members, a 27pc increase year-on-year.

During the year 3.4 billion litres of milk equivalent was sold through its 110 global markets.

John Jordan, CEO of Ornua said he was “pleased” to report a “strong” trading performance.

“This strong performance was achieved against a challenging global environment characterised by highly volatile butter prices, drought conditions in Europe, economic uncertainty due to Brexit and global trade wars.”

He added that the group’s key focus for 2019 is to drive growth for its full brand portfolio and food ingredients businesses across Ornua’s 110 markets “and to continue to deliver value for the 14,000 dairy farmers we represent.”

On the matter of Brexit, Ornua said it has been preparing for the potential impact for over two years.

The group added that its primary focus has been working closely with key UK customers and suppliers to ensure security of supply and to minimise the short-term impacts on its businesses. 

“The UK remains a key strategic market for Ornua and any change in the status quo will create competitive challenges for Irish dairy exports.”

“Ornua has developed sales channels across a diverse range of markets and will continue to invest to minimise the potential impacts of any Brexit deal,” the group added.

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