Irish dairy cooperative Aurivo has seen a 71.4% decline in operating profit, to €5.1 million, in its financial year 2023, down from €17.8 million in the preceding financial year.
The cooperative attributed this decline to a significant decline in milk prices throughout the year, as well as a decline in fertiliser sales, according to media reports.
Revenue for the financial year reached €638.6 million, down 16.4% year on year, from €764.2 million in 2022.
The Connacht Gold maker's earnings before interest, taxes, depreciation and amortisation (EBITDA) for 2023 amounted to €14 million, down 43.8% from €24.9 million in 2022.
'Robust Performance'
According to Aurivo chief executive officer Donal Tierney, the dairy cooperative delivered a "robust performance" in a challenging year and "remained absolutely committed to its strategic priority of building a sustainable future for the business."
The average milk price paid to farmers was down almost 30% year on year to 43.1c/L in 2023 from 61.4c/L in the previous year.
Turnover in Aurivo's dairy ingredients division declined 30.6% during the year to €340.4 million, while the agri-business division reported a 13.9% decline to €161.7 million.
The company's consumer foods turnover saw a slight increase of 0.3% to €137.5 million.
Sales of Connacht Gold increased by 14% in 2023 and by close to a quarter since 2021.
Outlook
Aurivo expects 2024 to be a better year, both for the cooperative itself and the wider sector.
It will continue to manage 'the business prudently and support its farmer members and make effective and necessary investments for the future'.
“Our focus continues to be on the delivery of ongoing value to our members, customers and the communities we serve and operate in,” Tierney stated.
