Co Sligo-based co-op Aurivo, which owns and produces the Connacht Gold dairy brand, has reported higher revenues and operating profits for 2022 despite a challenging year of inflationary pressures and volatility.
Aurivo said its revenues increased by 34% to €764.2m from €570.3m in 2021.
Operating profit was up by 41.2% to €17.8m from €12.6m the previous year, while Aurivo recorded EBITDA of €24.9m, an increase of 28.1% on 2021.
The co-op said it invested €19.9m in operating assets - an increase of 180.7% - to ensure future sustainable growth.
It also delivered a record average milk price over the year of 61.4 cpl, an increase of 50.9% on the price of 40.7 in 2021.
Aurivo said that revenues at its Consumer Foods division rose by 31.3% to €137.2m.
It noted that retail butter sales increased by 9% in 2022 with Connacht Gold Half sales increasing by 10% on the previous year.
Aurivo said its For Goodness Shakes sports nutrition brand had an "exceptional" year in 2022 with volume sales 30% higher than its previous record year in 2021, while revenues also increased by 41%.
Aurivo said its proposal to buy the liquid milk and retail butter van sales business of Arrabawn is before the Competition and Consumer Protection Commission for approval.
"On the basis of a successful outcome relating to the transaction, Aurivo looks forward to a positive year of growth in its Consumer Foods business," it stated.
The addition of Arrabawn / Dawn liquid milk and retail butter to the Aurivo family of brands will strengthen the Co-Op's position in the coming years," it added.
Revenues at its Dairy Ingredients business jumped by 44.6% to €340.4m from €235.5m in 2021.
It said the business had a very strong year with record volumes of milk being processed over the year, with progress made on growing sales in Central America, Middle East and Southeast Asia.
The Co-Op said the process to extend its product range continued with great success in innovation with the introduction of lower protein, higher returning product ranges.
Meanwhile, 2022 saw 29 new entrants to dairying across seven counties and the business looks forward to welcoming about 22 new entrants this year.
Meanwhile, its Agri Business revenues rose by 31% to €187.7m from €143.3m in 2021.
It said that retail sales through its network of Homeland stores were robust over the period and were normalised after two years of Covid related consumer purchasing trends.
Feed volumes increased by 4.7% while fertiliser volumes fell by 9% from a record high in 2021, it noted.
Donal Tierney, the chief executive of Aurivo, said that 2022 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. This was achieved in 2022 in tandem with the delivery of an all-time high milk price to our suppliers while continuing to invest in our operations and our people, both of which are critical to the continued growth of Aurivo," Mr Tierney said.
The CEO said the business is facing further volatility and headwinds in 2023, so having in place, as Aurivo does, a firm, sustainable and efficient business model has never been more important.
"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," he said.
"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," he noted.
"While there has been a noticeable reduction in farmgate milk price, we expect the milk price to settle above the historical average milk price," he added.
