Irish dairy firm Ornua has reported a 1.3% increase in operating profit in the year to 26 December 2021, with turnover rising 6.9% in the period.
Turnover for the full year came in at just over €2.5 billion, compared to €2.34 billion a year earlier. Operating profit was €153.7 million (2020: €151.8 million).
Operating profit performance was boosted through a combination of growing the group's branded product range, expanding innovation capabilities, and 'leveraging its strong customer partnerships and international scale'. Ornua said.
The group's Kerrygold brand was a solid performer in the period, seeing volume growth up 12%, with more than 11 million packets of butter and cheese sold globally each week.
Kerrygold continues to perform strongly in Germany, the group added, and is the No. 2 butter brand in the US.
Elsewhere, the group's Ornua Ingredients arm increased its US presence during the year, with the acquisition of Whitehall Specialties Inc 'unlocking significant growth and innovation capacity', it said.
“Ornua maintained a strong, stable, and sustainable performance year-on-year, as we marked our 60th year in business," commented John Jordan, Ornua chief executive.
"Our 60 years in business has stood to us in our capacity to respond to change and to continue to deliver for our customers, colleagues, and shareholders. While challenges persist in 2022, we are commercially and strategically well-placed to manage their impact on our business and continue to return value to our member co-ops and the Irish farming families that they represent."
Expansion In Cork
From an investment perspective, the year also saw approval granted for the €40 million expansion of Kerrygold Park in Mitchelstown, Co. Cork, which will increase the butter brand's capability to meet growing global demand, the group added.
Looking ahead, the group cited a number of challenges in the year ahead, including the impact of inflation on raw materials, energy, packaging and salaries, as well as geopolitical instability and supply chain challenges.
These 'will need to be monitored and managed closely', it added.