FDBusiness.com

Reduced margins at its DPI US speciality food business were behind a sharp drop in EBITA by a third to Eur26.9m, despite a 6% rise in turnover to Eur1.9b in 2010 at the Irish Dairy Board. The consumer food division, which encompasses the Kerrygold butter and Pilgrim’s Choice cheese brands in the UK, increased sales by 38% to Eur747.3m.

Sales at the commercial and ingredients division rose by 7.7% to Eur468m, while sales at DPI in the US were Eur710m,

“Overall the business reported a satisfactory performance in 2010, with the exception of our DPI, where margins, in common with the broader market, contracted sharply,” says Kevin Lane, chief executive of the Irish Dairy Board. “Last year was a transitional one for the business and one which saw the IDB develop its strategic growth plans to re-position the business for the future.”

He adds: “In 2010 we have taken major steps on our journey to transform the business and are committed to having a world class business that will deliver excellent results.” The IDB will pay out of Eur11.7m to its member co-operatives.