Carbery Group, the west Cork-based international ingredients, flavours, and cheese producer, has reported a drop in group turnover and operating profit for 2023.
According to the company’s Annual Report for 2023 published today (Wednesday, April 24), group turnover was €616.1 million for 2023, while on a constant currency basis turnover decreased by 11% year-on-year.
Group EBITA (operating profit before interest, tax, amortisation of goodwill and other intangibles and exceptional items) decreased to €25.5 million (2022: €32.8 million) reflecting a year-on-year decrease of 22%.
Group EBITDA (earnings before interest, tax, depreciation (net of grants), amortisation of goodwill and other intangibles and exceptional items) decreased by 11% to €46.4 million compared to €52.1 million in 2022.
Carbery Group has said that it had a successful year in meeting sustainability targets, recording a reduction of 5.27% in carbon emissions since 2022.
The report also highlights a reduction of water use by 1% across the group since 2022. Carbery Group committed to ‘Science-Based Targets’, received Origin Green Gold Member status in 2023 and won ‘Sustainable Exporter of the Year’ and overall ‘Exporter of the Year’ at the Irish Export Awards.
On farm, the FutureProof sustainability bonus scheme for 2023 was taken up by 85% of farmers (90% of the group’s milk supply) in its first full year.
By embracing new technologies and maximising efficiencies, Carbery Group’s Farm Zero C project has reportedly reduced emissions by 27% since 2018 while maintaining output and improving profitability.
Carbon emissions dropped from 0.66kg CO2/kg fat and protein corrected milk (FPCM) in 2022 to 0.63 in 2023. The carbon footprint of the average Irish farm for 2023 is 0.90 kg CO2/kg FPCM.
Jason Hawkins, CEO of Carbery Group said: “Our performance this year across our business was steady which is a testament to the resilient nature of our business model and to the decisions we have made.
“The strength of our diversified business model and our balance sheet allowed us to pay the second highest milk price in our history to our shareholders while also continuing to invest in the business and deliver on our sustainability ambitions.
“Carbery is very proud that despite a challenging year, we managed to maintain our position as leaders in milk price.
“I am really pleased that we have been able to continue to focus on our sustainability journey across our global production facilities, while also making progress on assisting our farmers to reduce their climate footprint,” he added.
Milk price and sustainability at Carbery
Cormac O’Keeffe, Carbery Group chairman added: “This year was another successful year in Carbery’s history, despite a challenging year for global markets.
“The success is down to the business structure we have developed over many years through the strategic decisions with the support of the Carbery Board.”
O’Keeffe highlighted the FutureProof scheme, where farmers, representing 90% of Carbery’s milk supply, received up to 1c/L for carrying out specific actions to improve sustainability.
These actions included the use of protected urea; milk recording four times a year; agreeing to an Agricultural Sustainability Support and Advisory Programme (ASSAP) assessment; implementing or improving Economic Breeding Index (EBI).
“In my last year as chairman, I am very proud of how we prioritised paying a leading milk price,” O’Keeffe continued.
“It’s also been great to see our global footprint expand, and through the ecosystems we have built, I’m positive Carbery Group will enjoy great success in the future.“
Sectors
Dairy: According to the report, the performance of Carbery’s Dairy business was impacted by the volatility of dairy markets throughout 2023 driven by subdued consumer spending.
This was as a result of cost-of-living concerns, high dairy supply from 2022, geopolitical tensions and supply chain disruptions.
Despite external challenges, Carbery Group’s milk volumes remained strong at 584 million litres processed in 2023.
Taste: Carbery Group’s Taste division had a very strong performance in 2023, with all regions delivering strong EBITA growth in 2023.
In Europe, growth was driven by nutrition and beverage categories and despite some challenges in the US market, that market saw significant year-on-year growth and further enhanced strategic partnerships, according to the Annual Report.
Nutrition: The nutritional ingredients business had a good performance across all target segments of infant formula, sports nutrition, and clinical nutrition and continued pursuit of high value-added opportunities across global markets, according to Carbery.
Looking ahead
The opening of the Carbery Group Asia Business and Innovation Centre in Singapore was a significant investment in the region in 2023.
The group also celebrated significant anniversaries in 2023 with the Thailand team marking 10 years since the opening of their production facility, the UK team celebrating 25 years and the Italian team marking 140 years in business.
Jason Hawkins commented: “Our main priority will be to support our farmers through maintaining a leading milk price and supports through a challenging landscape for them.
“We are always close to our cooperative roots, and so we are focused on making our collective impact a positive one on our communities.
“At the end of 2023, we completed our new business strategy that focuses on the near-term three-year business plans while also considering the 10-year business horizon; we’re looking forward to beginning that journey this year.”
Carbery Group
Carbery Group is headquartered at Ballineen, Co. Cork, Ireland and is owned by four Irish cooperatives – Bandon, Barryroe, Drinagh and Lisavaird – and employs almost 1000 people, with 1,180 local farmer suppliers.
Carbery operates from 12 locations including Ireland, the UK, US, Brazil, Italy, Singapore, Indonesia and Thailand and supplies more than 50 countries worldwide.
Carbery was established in 1965 and producers cheeses for the industrial, foodservice and retail sectors including the Dubliner brand, Carbery Cracker and Red Leicester.
From these roots, Carbery has extended both its product portfolio and global reach, becoming a provider of whey protein ingredients.