Irish dairy cooperative Aurivo has reported a 34% increase in turnover, to €764.2 million, in its financial year 2022.
Operating profit grew by 41.2% during this period, to €17.8 million, while EBITDA amounted to €24.9 million – up 28.1% year-on-year.
The cooperative described its performance as 'strong and resilient' in tandem with the delivery of a 'record milk price' of 61.4 cpl, reflecting an increase of around 50.9% from 40.7 cpl in full-year 2021.
Aurivo invested €19.9 million in operating assets, an increase of 180.7% year on year to ensure future sustainable growth.
An 'Exceptionally Challenging' Year
Donal Tierney, chief executive of Aurivo said, "The year under review was an exceptionally challenging one with significant inflationary pressure and volatility causing added uncertainty both on farms and within our co-operative.
"Despite these challenges, Aurivo delivered a record financial performance – building on its continued growth over the past five years."
The dairy cooperative saw the addition of 29 new members in 2022, while 250 family farms joined the Soil Sustainability Programme.
The Aurivo milk pool saw growth of 2.4% in full-year 2022 to 514 million litres, from 502 million in 2021.
The agribusiness firm, headquartered in the northwest of Ireland, was awarded Origin Green Gold Membership in 2022.
Read More: Ornua Sees Turnover Up 36.7% In FY 2022
Outlook
Aurivo expects further volatility and headwinds in 2023 and emphasised having a firm, sustainable and efficient business model in place.
Tierney added, "Whilst inflation is showing signs of moderating, it is likely that input costs for both farmer and processor will continue to be higher than historical averages.
"Dairy commodity prices suffered a sharp decline during the fourth quarter of 2022, and we have experienced further decreases in Q1 and early Q2 of 2023. While there has been a noticeable reduction in farmgate milk price, we expect the milk price to settle above the historical average milk price."
© 2023 European Supermarket Magazine – your source for the latest fresh-produce news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
