Irish agricultural and dairy cooperative Aurivo has reported a group operating profit increase of 10%, to €3.9 million, for 2017.
Turnover increased by 9%, to €426.4 million, while net debt reduced significantly, from €16.6 million in 2016 to €5.7 million in 2017.
The company, based in the north-west of the country, invested €4 million in its business last year, bringing the total investment to €28.7 million over the past seven years.
Aaron Forde, CEO of Aurivo, said, "[The year 2017] was a year of achievement, based on meeting the needs and requirements of our members and customers, and a year of carrying out the necessary planning and development work to put in place the foundation blocks to ensure Aurivo’s continued growth and success."
Record Dairy Volumes
Aurivo processed a record volume of 420 million litres of milk in 2017 – an 8% bump from the year before. However, the year ahead will be marked by more volatility and uncertainty, according to Forde.
Market returns and business performance allowed Aurivo to pay a competitive milk price for 2017, the company said.
"While milk supply growth continues in 2018, the current year will be one with significant volatility," Forde added. "Brexit is an uncertainty for our business and the wider sector."
"We continually monitor the situation and continue to put in place plans through our Brexit team to ensure we are as ready as possible for the inevitable fallout from the UK’s exit of the EU," said Forde. "Ultimately, the sector needs the government to get the best-possible deal for Irish food and agribusiness."
Unfavourable Weather
Unfavourable weather conditions in the latter half of 2017 presented fodder issues for farmers, the company said.
Harsh spring weather at the beginning of this year has already led to emergency imports of fodder for cattle across Ireland over the last few weeks.
The cooperative, which makes the dairy brands Connacht Gold and Donegal Creameries, also recorded a strong year for its consumer foods business, with increased sales across milk, butter and sports nutrition.
It also improved positions and sales for both its Agri and Marts business divisions.
Investment Programme
During the year, the company launched a five-year GMP investment programme in upgrades to its dairy ingredients facility in Ballaghaderreen, Co. Mayo. Furthermore, it completed its five-year strategic plan, Engage 2022, which will ensure the company’s continued growth, according to Aurivo.
Pat Duffy, chairman of Aurivo, commented on the results, saying, "Aside from issues outside of our control, we have a real sense of renewed confidence for 2018 and beyond.
"This is a truly efficient and effective business that is delivering for all its stakeholders," Duffy added. "We have an ambitious plan for the future growth of the business, and the operational plan to deliver that is now well under way."
© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Kevin Duggan. Click subscribe to sign up to ESM: European Supermarket Magazine.
