Arrabawn Co-op has reported a 20% drop in turnover from €505 million in 2022 to €403 million in 2023, latest financial results published today (Thursday, April 18) show.
The co-op’s chair, Edward Carr, said the results were achieved against the backdrop of a “challenging year for farmers through weather conditions, input costs and reduction in farm gate returns”.
The co-op which is headquartered in Nenagh, Co. Tipperary and has around 1,000 member farmers, also declared a record operating profit of €10.77 million which was up 12.5% year on year.
Arrabawn Co-op also grew its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) by 5.5% to €19.1 million last year.
It closed 2023 with a net debt of €10.3 million – a €13.8 million decrease compared to corresponding figures for 2022 and down from a high of €45 million in 2019.
According to the co-op one exceptional item, not recorded in either EBIDTA or operating profit for 2023, was a profit of €4.3 million from the sale of its former liquid business in Kilconnell last year.
Arrabawn also completed a €3 million extension to its Dan O’Connor Feeds mill in Limerick last year and other capital expenditure projects included a new entrance at its Nenagh headquarters, including new intake and CIP (Cleaning in Place for trucks) areas as well as water and heat recovery.
The latest financial results show the co-op’s shareholders’ funds increased by €11.5 million which is a 51% increase to €77.3 million on where they were five years ago,
Arrabawn Co-op
The latest annual report published by Arrabawn Co-op also highlighted today that it paid an average milk price of 43.77c/L last year which represented a 16.8c/L decrease on 2022 milk prices.
According to Arrabawn’s chief executive office (CEO) Conor Ryan, 2023 proved to be a much more challenging year, which he blamed on dairy markets, compared to an “exceptional year” in 2022.
“Turnover was down as a result, but the value add from our record investment programme was reflected by the record EBIDTA and operating profit, both excluding exceptionals.
“This is a very encouraging outcome. Our single exceptional item was the sale of our Kilconnell facility and we are grateful to the people who worked with us in this business and on the transition.
“Overall, Arrabawn has achieved high levels of efficiency and sustainability and is well placed for the future,” Ryan added.