Irish dairy cooperative Dairygold has reported a 40.9% year-on-year increase in turnover, to €1.65 billion, in its 2022 financial year.
EBITDA for the financial year grew by €10.9 million, amounting to €68.5 million, while operating profit increased by €9.8 million to €40.2 million.
The increase in EBITDA and operating profit was achieved against a backdrop of considerable volatility and inflationary pressures, the dairy cooperative noted.
'Strong Operational And Financial Performance'
According to chief executive Conor Galvin, the cooperative society "delivered a very strong operational and financial performance."
The group's performance was driven by "maximising the unprecedented high market returns, achieving enhanced operational efficiencies, while managing volatility and significant inflationary pressures. This enabled the society to pay very strong and extremely competitive prices to members for their produce," he added.
Milk production in the cooperative reached 1.48 billion litres, with dairy sales volumes amounting to 235,000 tonnes.
Dairygold Ireland's turnover amounted to €1.03 million, up €301.6 million compared to 2021, mainly due to high market prices.
Its agribusiness unit also delivered a good performance, with grain purchases amounting to 107,000 tonnes.
Dairygold chair Seán O’Brien commented, "2022 has been a very good year for the society, a testament to the capability and determination of the society’s members, employees and customers.
"As we move further into a new year, high input costs, market volatility and the current geopolitical landscape continue to be a concern. We will continue to work in the best interest of our members to alleviate the pressures of the volatile and challenging market environment, while also continuing to deliver on our members’ ambitions."
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In 2022, Dairygold launched 'Our Strategy Our Future 2023', outlining its goals and strategies up to 2030.
Some of its goals include organic growth and diversification through acquisitions and maximising 'grass-fed' food ingredients, among others.
Galvin stated, "The last number of years have been very positive for the society, and while we have a clear roadmap for the future ‘Our Strategy Our Future 2030’, we need to be cognisant of how these challenges will influence the future, to continue that success over the coming years.
"Making the appropriate and necessary decisions, to future-proof farm enterprises and the society, will be critical to delivering the short-term goals and long-term strategic ambitions of the society and our members."
© 2023 European Supermarket Magazine – your source for the latest Supply Chain news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.