The west Cork-based international ingredients company, Carbery Group, has reported “a solid financial performance” for the year ended December 31, 2018.
Celebrating 50 years of production in 2018, Carbery Group’s turnover for the year was up 1.5% to €423.5 million from €417.3 million in the previous year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 5.2% to €43.9 million, up from €41.8 million in 2017.
The group reported an increased operating profit before interest, tax, amortisation and exceptional items of €32.4 million () an increase of 4.5% from €31 million in 2017.
CEO’s response
Commenting on the results, Jason Hawkins, Carbery Group’s CEO, said: “The results reflected the strong trading performance across all three of Carbery’s key business platforms of dairy, taste and nutrition.
Despite some difficult farming conditions throughout the first half of 2018, milk supply from our farmers increased by 5%, continuing our consistent growth of milk supply.
“Each of our businesses performed in line with our expectations, allowing us to continue to pay a leading milk price to our shareholders, while also extending support payments for longer periods to support farmers through the severe weather conditions at the start of 2018.”
“As we look forward, we are actively addressing challenges by diversifying our offering in order to expand into new geographic markets to grow and future proof our business.”
Hawkins also noted that the Carbery Board declared a €4.3 million bonus based on 2018 milk supply and took the decision to set aside this amount for its Stability Fund, for future payments at times of price volatility.
Investment
During 2018, Carbery invested a further €18 million across its global operations, bringing total investment in the business over the past five years to a total of €90 million.
Carbery also acquired the Italian flavour company Janousek, to further develop the company’s flavour footprint in Europe and recently announced the doubling in size of its Asia operations at Samut Prakan in Thailand.
A significant period of expansion
Continuing, Hawkins added: “We are about to enter a significant period of expansion and investment.
“We have committed to investing a further €100 million in the business over the next two years alone, as Carbery seeks to diversify and grow its business internationally.
“€78 million of this investment has been set aside for a new manufacturing facility at the Ballineen site, which will allow Carbery to diversify from its exclusive production of cheddar cheese into an expanded range of new cheese offerings, including mozzarella.”
Hawkins concluded: “This is in response to increased market growth and consumer demand for mozzarella and other cheese varieties in emerging markets.”