The Irish Dairy Board has reported a pre-tax surplus of €37.9m for 2004, up 3.8% on the previous year.
Despite the weakening of the dollar and a reduction in EU support prices, the Board said that turnover was up 4.5% to €1.896 billion, while retained earnings for the year were €30.1m, up 7.6%.
The co-operative said that these results are largely as a result of the continuing healthy performance of the Kerrygold brand and overseas subsidiary companies. Overall sales of Kerrygold branded products were 5.2% higher.
Group revenue reserves increased by 9.2% to 264,7m. Net bank borrowings were 59.7m at the end of the year, compared to 67.7m at the end of 2003. The company said this reflected the continuing reduction in group net debt.
Members funds amounted to €325.9m, an increase of €20m on the value in 2003.
The Irish Dairy Board said there was strong international demand for dairy products during the year, especially from development markets due to reduced availability from some of the key international exporters.
The board's international subsidiary companies all reported strong results for 2004. The Adams Foods group in the UK increased its turnover by 11%. In Belgium, IDB Benelux continued its programme of diversification in the prepared snacks and sandwich bar sector. Its butter packing facility in France extended its export business while sales growth though IDB Deutschland was maintained.
Despite the weak dollar, sales of Kerrygold branded products in the US increased dramatically by 30% and new additions were made to the portfolio.
'The implementation phases of the Luxembourg Farm Agreement, and WTO progress on trade liberalisation, pose a serious challenge, but the Irish Dairy Board will continue to grow its branded and food ingredients business and exploit all opportunities for added value Irish dairy products in international markets,' commented Dr Noel Cawley, IDB's Managing Director.
