Aurivo has published its full-year financial results for 2021 today (Wednesday, April 6), which shows that the co-op enjoyed an “exceptional” year, despite the challenges that the Covid-19 pandemic presented.
The company’s turnover increased by 16.7% to €570.3 million in 2021, up from €488.7 million in 2020.
Operating profit, before exceptionals, increased by 48.6% to €12.6 million, up from €8.5 million in 2020.
Group earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 28.2% to €19.4 million, up from 2020’s figure of €15.1 million.
And, Aurivo’s closing net cash position for 2021 was €0.4 million.
Consumer foods
Aurivo’s consumer foods business division delivered a strong performance for 2021, recording a sales turnover of €104.5 million, an increase of 7.8% on 2020.
Aurivo’s liquid plant in Killygordan, Co. Donegal processed 111 million litres of liquid milk, an increase of a further one million litres on 2020.
The co-op’s consumer milk and butter brands performed strongly during the year in review.
Dairy ingredients
Aurivo’s dairy ingredients business also performed strongly in 2021, according to the company, with turnover increasing by 18.9% to €235.5 million.
The co-op processed a record volume of milk in 2021 and also shipped its first order of enriched milk powder to Malaysia, estimated at between 10,000-12,000t during spring 2021.
Agri-business
Aurivo’s agri-business division had a robust year, with an increase in sales turnover by 12.1% to €143.3 million, up from €129 million in 2020.
To meet continued demand from new and existing customers, and to support future growth plans, an investment of over €4 million commenced in 2021 for the installation of an additional press line in the agri-business feed mill in Ballaghaderreen.
Marts
Aurivo’s livestock marts had a good year in 2021, according to the company, with sales turnover increasing by 32.1% to €87 million, up from €65.9 million in 2020.
While Aurivo’s marts were forced to operate on an online basis for much of 2020, the business unit strove hard in 2021 to retrieve lost ground, the company said.
Aurivo is successfully operating a dual system through the traditional mart services and through its live online service for those choosing to purchase livestock remotely.
The year under review saw record prices for forward beef cattle, which resulted in a return to the ringside of these cattle which normally would have gone direct to factory.
Operational highlights of 2021:
- Average milk price for 2021 was 40.9c/L compared to 35.61c/L in 2020;
- Milk stability fund in support of future milk price volatility increased to €7 million (that figure was €3 million in 2020);
- Capital expenditure of €7.1 million – cumulative investment over past four years has been €45.7 million.
- 39 new entrants to co-op.
Commenting on the annual results, chief executive of Aurivo, Donal Tierney, said it had been a record year for the co-op in terms of milk volume handled; increased sales across all facets of the business; improving profitability; and continuing to invest.
“Notwithstanding many positive elements that have carried over into 2022, such as the ending of pandemic restrictions and strong global dairy and food service demand, the dramatic and ongoing rise in input and operational costs for both our suppliers and the co-op (exacerbated by war in Ukraine) will pose significant challenges for the business in 2022.
“Our approach over the coming year will be one of prudence to secure business continuity and future sustainable growth.”
Chairman of Aurivo, Raymond Barlow, said:
“The impacts of increasing input costs and supply chain difficulties are of significant concern and need to be carefully managed. As a business we are responding to inflationary pressures by driving efficiencies wherever possible.”