Aurivo records increased turnover but profits drop for 2018
Aurivo recorded an increased turnover – up 4% on the previous year – for 2018, but took a hit to profits to the tune of €900,000 in its financial results for the year.
Revealing its results for 2018 today, Wednesday, April 17, the north-west dairy co-operative described its financial performance as “robust” and in line with expectations in a year marked with ongoing volatility in global dairy markets.
2018 saw the largest investment in the history of the co-operative with new capital investment of €22 million, just the start of a €48 million five-year investment programme.
The move is aimed to ensure Aurivo is well-positioned to take advantage of future market opportunities.
Aurivo reported a group operating profit before exceptional items of €3.0 million, a drop of 23% on 2017’s profit of €3.9 million.
With increased investment, net debt for 2018 was posted at €14.6 million.
Consumer Foods turnover dropped marginally, from €99.1 million to €98.8 million in 2018. However, Dairy Ingredients turnover increased by 7% from €143.5 million to €153.4 million.
A total of 439 million litres of milk were processed in 2018, which is noted as a record year – equating to a 7.8% growth on 2017.
Meanwhile, a fourth Fixed Milk Price Scheme was launched; improved market returns saw the average Aurivo quoted milk price recover to 32c/L, according to the co-op.
Commenting on the year, Aurivo CEO said: “The uncertainties and implications of Brexit pose significant challenges to the sector.
Within that environment, our focus as a diverse co-operative will continue to be on growing a sustainable business that will not only create value for our members but will ensure a certain future for our farms, and our communities for generations to come.
“Our €48 million planned investment programme aims to ensure we become a sustainable partner of choice for our customers, both nationally and internationally, with the facilities and capabilities to produce the best possible products.”