FDBusiness.com

Ireland’s largest exporter of dairy products, Ornua Co-operative (formerly the Irish Dairy Board) has delivered a strong financial performance for 2014, characterised by robust revenue growth and investment in the development of new routes to market.

Turnover rose by 10% to €2.34 billion, helping to drive a group operating surplus of €30.3 million. This was achieved alongside considerable investment across the business including a €36 million spend in brand development and market support. In addition, purchases from members were up 41,000 tonnes on 2013, an increase of 16%. Profit before tax rose 23% to €28.1 million. On the back of this outturn, a €12 million bonus was declared to members, including a cash bonus of €7.5 million, up 15% on 2013.

Ornua owns the iconic Kerrygold brand which is synonymous the world over for quality butter, cheese and milk powders, selling hundreds millions of packets of butter each year. Currently supplying dairy branded products and ingredients into over 110 markets around the world, Ornua’s mission is to open and develop valuable global markets for dairy products and in doing so, deliver strong returns to the farmers it represents.

A substantial increase in investment in M&A and capital expenditure activity in 2014, in preparation for the increased Irish dairy volumes post quota, saw Ornua end the year with €99.3 million of debt. The group balance sheet is very strong with net assets of €436 million. In 2014, Ornua successfully secured new five-year syndicated bank facilities totalling €420 million. These new increased facilities provide Ornua and the Irish dairy industry with significant funds to meet domestic expansion and international growth requirements.

Over the past number of years Ornua has been developing a global commercial infrastructure to take advantage of the post EU milk quota era. The last year saw a continuation of the already substantial investment which has been made in recent years in growing brands, new product development, in-market expansion, acquisitions, operational efficiency and people development. A culmination of this work was marked with the unveiling of a new global corporate identity. On 31 March 2015, the eve of quota removal, the Irish Dairy Board became Ornua – The Home of Irish Dairy, marking the latest step in its exciting journey of growth.

Kevin Lane, chief executive of Ornua, comments: “In addition to an excellent financial performance, 2014 was a year in which we significantly increased the capacity of our business through brand growth, innovation and in-market investment. We enter into this new era for Irish dairying in an excellent position, with a strongly performing organisation, geared for growth.”