Irish dairy cooperative Aurivo has reported 16.7% year-on-year growth in turnover, to €570.3 million, in its financial year 2021.
Commenting on its performance, Donal Tierney, chief executive of Aurivo, said that the cooperative was successful in delivering a “record year” in terms of milk volumes handled, growth in sales across all facets of the business, and improvement in profitability, while investing in future sustainable growth.
Operating profit (before exceptional items) increased by 48.6% to €12.6 million, up from €8.5 million in 2020.
Group EBITDA increased by 28.2% to €19.4 million compared to €15.1 million in its previous financial year.
Tierney added, “These results demonstrate the strength and relevance of our brands, our agile response to shifts in consumer demand and the extraordinary efforts of our committed employees and suppliers.
“These attributes helped position us to manage through the volatility and disruption caused by COVID-19 and emerge an even stronger business. It is also gratifying to note that the results for 2021 were achieved in tandem with a strong milk price paid to our suppliers across the year.”
Aurivo’s consumer foods business reported sales of €104.5 million, up 7.8% compared with 2020.
Its liquid plant in Killygordan in Donegal processed 111 million litres of liquid milk, an increase of one million litres compared with 2020.
The cooperative’s consumer milk and butter brands performed strongly in the period, with Connacht Gold retaining the number 2 position as Ireland’s most consumed and popular butter brand.
The For Goodness Shakes brand, which suffered a significant loss of volume in 2020 due to reduced footfall in large cities throughout the UK, also witnessed recovery.
The dairy ingredients segment saw 18.9% growth in turnover to €235.5 million, while the agribusiness unit grew sales by 12.1% year-on-year to €143.3 million.
'An Exceptional Year'
Raymond Barlow, chairman of Aurivo, stated, “2021 was an exceptional year for Aurivo despite the uncertainty and disruption brought about by the COVID-19 pandemic. Thanks to our farmers, employees, contract partners and customers, we have been able to deliver a record set of financial results while continuing to create value for all our stakeholders.
“During the year and particularly as we move through 2022, we are experiencing significant price inflation on both processor and farmer inputs. The impacts of increasing input costs and supply chain difficulties are of significant concern and need to be carefully managed. As a business we are responding to inflationary pressures by driving efficiencies wherever possible.”