Tirlán increases revenue by 36% to €3 billion in first year of operation
Tirlán (formerly Glanbia Ireland and Glanbia Co-op), Ireland’s largest farmer-owned food and nutrition business, has announced its first Annual Report and Accounts for 2022 showing a revenue rise of 36% to €3 billion, primarily driven by strong ingredient sales internationally. Tirlán delivered operating profits of €71.9 million and Profit After Tax (PAT) of €44.6 million while paying over €2 billion to more than 5,000 Irish farm families with record prices for milk and grain. The co-operative sold over 423,000 tonnes of dairy products and ingredient solutions into 100 markets during 2022.
Speaking about the report and results, Tirlán Chairman John Murphy said that 2022 was a milestone year for the co-operative business, its farmer Members and over 2,300 employees as it transitioned to a 100% farmer-owned business and unveiled its new identity.
John Murphy commented: “We are very pleased that in Tirlán’s first year of operation we have delivered record milk and grain prices. 2022 was a remarkable year, as we returned strong financial results whilst navigating a steady path through unprecedented volatility and sharp inflationary increases in the cost of inputs at every stage of the supply chain.
“Following our successful launch, Tirlán is firmly established, and operating as a fully farmer-owned business which gives us flexibility to continue to support our farmers while maintaining robust financial discipline. In 2022, our Members benefitted from a spin-out of around 12 million Glanbia plc shares, distributing a total value of €168 million. In addition, a dividend of over €6.5 million was paid to our farmer Members.
“We are hugely ambitious for the future of our Co-op. As always, we will face challenges, but we are determined to work hard to continue to deliver for the benefit of our Members and all our stakeholders.”
Tirlán recently marked a year since the transaction was completed to acquire the remaining 40% of Glanbia Ireland from Glanbia plc to create a 100% farmer-owned operating co-operative. It was the largest acquisition by an indigenous Irish company in 2022. In August 2022, the Co-op launched its new identity Tirlán which signifies a ‘land of abundance’.
The business operates across three categories – Agribusiness, Consumer and Ingredients – and now sells into more than 100 markets worldwide.
The Ingredients category recorded an excellent commercial performance, delivering €2.1 billion of revenue, capitalising on global highs in dairy markets throughout much of 2022. It recorded sales of 423,000 tonnes of dairy products and ingredient solutions, with a strong focus on tailored ingredient applications and expansion of its plant-based range.
Agribusiness achieved sales of €644 million, with over 491,000 tonnes of feed sold and an exceptionally strong performance across our 52 branch network and field sales team. An €11 million investment is underway to upgrade our agri-branch network.
In line with the marketplace, fertiliser sales volumes were down by 20% on the previous year, driven by high raw material costs and supply chain challenges.
As the largest buyer and user of Irish grains, Tirlán paid farmer Members over €100 million with an excellent harvest boosting intake to 290,000 tonnes. A focus on a specialised premium grains portfolio delivered over €3 million in premium payments to growers.
The domestic and international consumer category, which includes award-winning brands such Avonmore, Kilmeaden, Wexford, Premier, MyMilkman.ie and Truly Grass Fed, delivered €365 million of turnover in a challenging marketplace. A significant restructuring took place in 2022 to put the consumer category on a more solid footing with a firm focus on digital innovation.
The consumer category continues to focus on new product development, with the recent launch of Avonmore Fibre Plus Milk and a new plant-based range of Avonmore Oat drinks. In the international market, the Avonmore Professional range of UHT cream continues to win new customers in south-east Asia, with a particular focus on China and Vietnam.
Tirlán CEO Jim Bergin commented: “We are pleased to have delivered an excellent performance in our first year where we focused on building a strong independent organisation, with best-in-class governance structures and strong financial disciplines. The result is a vibrant organisation with 2,300 committed employees and over 5,000 dedicated farm families at its core.
“I want to thank them for their contributions and know that by working together we can achieve even more in the years ahead.
“While 2023 is proving challenging to date with a significant reduction in dairy market returns, combined with high farm input costs and supply chain inflation, we believe our Co-op is well-positioned to navigate these challenges and support our farmer Members.
“We are on track with the construction of our €200 million continental cheese facility in south Kilkenny with our partners Royal A-Ware. This exciting project provides Tirlán with new technologies and immediate access to new scale markets for 50,000 tonnes of continental cheese.
“As a significant economic driver and employer in the south-east region, Tirlán is currently recruiting for over 130 positions, in addition to up to 40 graduate positions.”
Tirlán recently launched a new five-year strategy ‘Nourishing Ambition’ with a focus on adding value to its milk and grain pool. The organisation is continuing to enhance its innovation capabilities through its new €15 million Innovation Centre and is assessing strategic opportunities for its €150 million Investment Fund.
CAPTION:
Pictured (left to right): Tirlán Chairman John Murphy; Dr Lisa Koep, Chief ESG Officer; Tirlán CEO Jim Bergin; and Michael Horan, Chief Finance & Secretariat Officer.
