The Mitchelstown-headquartered Dairygold co-op saw its turnover soar by more than €477 million to a record €1.65 billion in 2022, latest financial results show today (Wednesday, April 12).

Operating profits at the Co. Cork co-op also jumped by €9.8 million to €40.2 million last year.

According to the co-op’s latest financial results this propelled Dairygold’s Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) to €68.5 million for 2022.

Seán O’Brien, Dairygold’s chair, said the latest results highlighted a “year of unprecedented increases in commodity prices which had been heavily impacted by the war in Ukraine”.

“The buoyant markets led to record milk and grain prices, but on the cost side, higher energy, fertiliser and feed prices, significantly impacted the cost of production.

“However, the higher market returns ensured a very successful year for Dairygold and its members,” he added.

Announcing the Dairygold 2022 annual results: Seán O’Brien, chair, Ann Fogarty, group company secretary, Michael Harte, chief financial officer and Conor Galvin, chief executive

Dairygold’s chair said the co-op had “reflected” the particular market dynamic which characterised 2022 by paying “a historically high milk price of 62.4c/L” – based on the average constituents received including bonuses and VAT.

According to the chair of Dairygold this represented an increase of 52% on the 2021 milk price and a 70% increase on the co-op’s five-year average milk price of 36.8c/L, from 2017 to 2021.

Although the co-op said that Irish milk supply “fell short of expectations”, milk production in Dairygold remained “generally in line with 2021”.

The co-op collected and processed 1.48 billion litres of milk from its milk suppliers in 2022, however the peak week milk supply was 45.7 million litres, down 1.4 million litres on 2021 figures.

According to Dairygold, its suppliers achieved average annual levels of 3.59% for protein and 4.29% for butter fat.

Overall, the Co.Cork co-op’s latest set of financial results show an improved performance across all of its key divisions last year.

Its dairy business turnover increased by €374.1 million to €1,245.7 million (2021: €871.6 million) primarily driven by year-on-year increases in market prices.

While its agri-business turnover increased by €112.3 million year-on-year to €388.5 million, which reflected both increased volume and price for ruminant feed and fertiliser.

However, weaker consumer sentiment dragged down the performance of its retail operations by €2.3 million last year.

The co-op’s non core activities, which include property, also slumped by €8.6 million in 2022 to €13 million because of a fall off in property sales last year.

The latest set of financial results also show that while Dairygold’s net asset value increased last year to €457.8 million, the co-op’s net bank debt also increased by €24.1 million to €132.3 million last year driven primarily by working capital requirements.

Conor Galvin, chief executive of the co-op, has described the net bank debt as “at a very manageable level”.

He confirmed the co-op had agreed new banking facilities and together with the level of net bank debt would allow it the “headwind” to “progress its strategic ambition, to invest in higher margin growth opportunities”.

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