Ornua, Ireland’s largest exporter of dairy products and owner of the Kerrygold brand, today (Wednesday, April 16) reported a slight dip in group turnover for 2024 to €3.4 billion but an 11.8% jump in operating profit.

Group turnover slipped back year on year by 0.2% while operating profit grew to €130.5 million.

Ornua's group earnings before interest, taxes, depreciation, and amortization (EBITDA) also increased by 10.5% to €165.5 million.

According to Conor Galvin, chief executive officer, Ornua, the results "reflect a strong trading performance amid volatile conditions driven by the impact of cost inflation and a pressurised milk supply".

Galvin said: "Our teams around the globe responded well to difficult market conditions to deliver for our member co-operatives, our customer partners, and the consumers that enjoy our products.

Throughout 2024 the co-op grew its net assets by 5% to €782.3 million and closed the year with a net debt of €86.1 million down from €153.7 million, which according to Galvin gives "the business greater financial flexibility."

In the co-op's latest annual report, released today, the outgoing chair of Ornua, Aidan O’Driscoll, also paid tribute to "the resilience of Irish dairy farmers who contended with intensely challenging conditions for much of the year including adverse weather, along with continued cost pressures".

Ornua outlined that although milk volumes were pressurised and adverse weather conditions took their toll, it had "remained focused" on providing a secure and profitable route to market for Irish dairy.

"These strong product prices were further supported by an Ornua Value Payment of €72.8 million for the year, made up of cash bonuses and additional premiums paid to Ornua’s member co-operatives for product supplied to the business," it stated.

It also confirmed that it had "continued to support the working capital requirements of its member co-operatives" with €481.5 million in working capital facilities provided during 2024.

Looking back on 2024, Ornua stated that the global dairy market had experienced a year of mixed fortunes overall.

"The first half saw a slight dip in milk supply, but a recovery in the latter half left annual supply flat overall," the co-op said.

It also detailed that Irish milk supply was "bolstered by a late surge in November andDecember, but added that this uplift had followed an extended period "in which supply was largely constrained".

Separately Ornua today warned that European dairy commodity prices "could align with global levels" but global trade tensions remain among the key potential "shock factors" in the months ahead.

The co-op's 2024 annual report also highlights that Ornua's global consumer foods division delivered a strong performance last year driven chiefly by the "continued growth of the Kerrygold brand in key strategic markets".

According to the co-op, in the region of 12 million retail packs of Kerrygold butter and cheese are sold globally every week.

Ornua said Kerrygold had continued to experience volume sales growth in the US "further strengthening its position as the number two branded butter" in what it described as the world’s largest consumer market.

"Kerrygold reached a record number of US households in the year, supported by the introduction of a new 1lb butter block, representing a category first in the market," Ornua stated.