Operating profit at cross-border dairy processing co-op Lakeland Dairies fell 54% last year to €14.8m on the back of lower revenues.
Group revenue came in at €1.6 billion, down 19% on the performance in 2022.
The co-op said this was because that year was an unprecedented one for dairy market returns, leading to record profits, but the market subsequently collapsed last year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) were €43.4m for 2023, down from €60.2m a year earlier.
"2023 was a difficult year for the dairy industry. Nobody, from farmer to processor, was disappointed to see the back of a year that challenged us at all levels," said Lakeland Dairies group chief executive Colin Kelly.
"Global markets collapsed, costs at farm and processor level remained stubbornly high, interest rates reached levels not seen for decades, and inflation impacted every one of us both inside our homes as well as inside the business.," he said.
"However, despite all these challenges, the financial strength of the co-op and our robust balance sheet ensured that we were well-placed to navigate this volatility. Our Revenues, EBITDA and operating profit before exceptionals all show a strong and resilient co-op," he added.
The organisation's food ingredients division recorded revenues of €955m, down from €1.2 billion a year earlier, by a dramatic reduction in demand starting in late 2022 which worked its way through in 2023.
Food service and consumer foods held up a little better, with revenue falling from €584m to €531m.
Lakeland said domestic markets across Ireland and the UK held steady, while the Middle East continued its post-pandemic recovery and Chinese demand for foodservice products saw stable growth.
The agribusiness division saw revenues of €112m on the back of increased feed sales and a reduction in market prices.
Lakeland said despite the challenges 2023 was a transformative year of change for it.
In November of last year, the firm said it would close three sites, putting dozens of jobs under threat, as it implemented plans to future-proof the business through a new strategy.
"Given the recent market volatility as well as huge regulatory and policy uncertainty, it is more important than ever that we look to the future in a very strategic manner," said Lakeland Dairies Chairperson Niall Matthews.
"Following rapid dairy industry growth and the expansion of milk production and processing over the past decade, the industry is transitioning from a supply volume perspective into more value-added product positioning," he said.
"This is our key strategic focus as a Board and as a co-op. We are making very definite steps to move up the value-add chain to support the long-term operations of our farm families," he added.
