Ornua reports profits up 23% in 2014, positive outlook for 2015

Ornua (formerly the Irish Dairy Board) has announced a review of its 2014 operational and financial performance, including and increase in turnover of 10% and a jump in profits of 23% (before tax).

In what it calls a very strong performance, characterised by excellent revenue growth and investment in the development of new routes to market for Irish dairy products, Ornua also says that ìts operating surplus was €30.3m.

Kevin Lane, Ornua CEO said that 2014 was a year in which we significantly increased the capacity of our business through brand growth, innovation and in-market investment.

We enter into this new era for Irish dairying in an excellent position, with a strongly performing organisation, geared for growth.

In 2014, Ornua reports that turnover rose by 10% to €2.34 billion, helping to drive a Group Operating Surplus of €30.3m.

This was achieved alongside investment across the business including a €36m spend in brand development and market support. In addition, purchases from members were up 41,000t on 2013, an increase of 16%.

Profit Before Tax rose to €28.1m, up 23% year-on-year. On the back of this, a €12m bonus was declared to members, including a cash bonus of €7.5m, up 15% on 2013.

A substantial increase in investment in M&A and Capital Expenditure activity in 2014, in preparation for the increased Irish dairy volumes post quota, saw Ornua end the year with €99.3m of debt, it reports.

The Group Balance Sheet has net assets of €436m. It also is predicting that 2015 will be a year of record growth, despite the challenging market condition.

Market Comment

Despite the pronounced weakening of dairy markets from early in 2014, the Ornua Purchase Price Index, a monthly indicator of market returns, returned an average value of 118 for the year.

This was five points ahead of the three-year average for the period 2011-13.

Key operational highlights from 2014 include
  • Increased in-market presence with 35 new people placed in-market in the past 18 months
  • Significant in-market investments in Africa, Germany, Spain, the US and the UK including:
    Opening of a new facility at Hilbert, Wisconsin marked the completion of a $80 million expansion programme in Ornua Ingredients North America
    Acquisition of assets and business of FoodTec, a UK specialist ingredients business
    Acquisition of a Spanish cheese business
    €14 million investment in packing and New Product Development facilities in Neukirchen-Vluyn, to meet the increased demand for Kerrygold products in Germany
    Completion of a long-term, strategic cheese supply partnership between Ornua’s UK subsidiary, Adams Foods Limited, and First Milk, the UK dairy co-operative.
  • Approval for the construction of a €36 million Centre of Excellence for Kerrygold Production & Butter Packing in Co. Cork. This new development will ensure a world-class supply chain to support the growth and development of the iconic Kerrygold brand.


Please be considerate of others when commenting. All comments posted are subject to our commenting policy. Comments violating this policy will be removed without notice.