Aurivo has published its full-year financial results for 2022 today (Wednesday, May 3), which shows a “strong and resilient performance” in spite of “a very challenging period of inflationary pressures and volatility”.
The co-op reported a 34% increase in turnover for 2022 to €764.2 million, up from €570.3 million in 2021.
Operating profit was up by 41.2% to €17.8 million, compared to €12.6 million the previous year.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 28.1% to €24.9 million, up from 2021’s figure of €19.4 million.
Aurivo
Aurivo invested €19.9 milllion in operating assets last year, compared to €7.1 million in 2021.
The co-op said that it delivered “a record average milk price” over the year of 61.4c/L, an increase of almost 51% on 2021 (40.7c/L).
The financial results show that turnover for the company’s dairy ingredients division rose by 44.6% to €340.4 million, while its consumer foods division rose by 31% to €137 million.
Retail butter sales increased by 9% in 2022 with Connacht Gold half sales increasing by 10% on the previous year.
2022 saw 29 new entrants to dairying across seven counties, Aurivo is expected around 22 new entrants this year.
250 farmers were added to the co-op’s soil sustainability programme.
The company’s milk pool increased by 2.4% to 514 million litres last year.
Aurivo’s said that the installation of a €15.5 million evaporator project at its dairy ingredients site in Co. Roscommon is set to be commissioned for peak milk supply season.
The facility in Ballaghaderreen is also undertaking upgrades and improvements to its effluent wastewater treatment system.
Aurivo’s proposal to acquire the liquid milk and retail butter van sales business of Arrabawn is currently before the Competition and Consumer Protection Commission (CCPC) for approval.
Agri-Business
The company’s agri-business revenues rose by 31% to €187.7 million, up from €143.3 million in 2021.
There were 1.6 million transactions over the year at Aurivo’s Homeland stores. Feed volumes increased by 4.7% while fertiliser volumes fell by 9% from a record high in 2021.
The board approved a €2 million fodder fund which offered farmers a discount on feed, fertiliser and lime from July to December of 2022.
Revenues at Aurivo’s livestock marts increased by 13.7% to €98.9 million.
Throughput for the year stood at over 76,000 cattle with the average price of cattle up by 11.8% in 2022, while sheep numbers were back 9.4%.
Financial results
Commenting on the annual results and outlook for 2023, Donal Tierney, chief executive of Aurivo said that last year was an exceptionally challenging one with significant inflationary pressure and volatility causing added uncertainty for farmers and the co-op.
“Our business is facing further volatility and headwinds in 2023, so having in place, as Aurivo does, a firm, sustainable and efficient business model has never been more important.
“Whilst inflation is showing signs of moderating, it is likely that input costs for both farmer and processor will continue to be higher than historical averages.
“Dairy commodity prices suffered a sharp decline during the fourth quarter (Q4) of 2022, and we have experienced further decreases in Q1 and early Q2 of 2023.
“While there has been a noticeable reduction in farmgate milk price, we expect the milk price to settle above the historical average milk price,” he said.