Arrabawn Co-Op, which has over 1,000 suppliers across Munster, Leinster and Connacht, said today that despite challenges in the industry, it reported a record financial performance across key metrics for last year.
Arrabawn posted record EBITDA (earnings before interest, taxes, depreciation, and amortisation) of €19.1m for 2023, an increase of 5.5% on 2022.
It also reported record operating profits of €10.77m for the year, up 12.5% on 2022's profits.
The Co-Op said its results underscores the return from its record investment programme at its Nenagh processing facility across the past decade, with the performance up 233% on five years ago.
Meanwhile, shareholders' funds increased by €11.5m, a 51% increase on five years ago, while net debt brought about by the investment programme is now down from a high of €45m in 2019 to €10.3m last year, a decrease of €13.8m on 2022 and now at pre-expansion levels.
It noted that an exceptional item, not recorded in either the Co-Op's EBIDTA or operating profits, was the profit of €4.3m from the sale of the liquid business in Kilconnell last year.
The Co-Op also delivered a strong milk price of 43.77c/lt, which it said supported suppliers in an otherwise challenging year of difficult weather conditions and persistently high input costs.
Arrabawn said its Agri Trading Division also continued to grow its customer base across 2023, on the back of its bonus shares loyalty programme, while other retail division sectors also showed solid growth last year.
Arrabawn CEO Conor Ryan said that after the exceptional year in 2022 for dairy markets, 2023 proved much more challenging with a drop in dairy commodities, in particular.
"Turnover was down as a result, but the value add from our record investment programme was reflected by the record EBIDTA and operating profit, both excluding exceptionals," Mr Ryan said.
"Our single exceptional item was the sale of our Kilconnell facility and we are grateful to the people who worked with us in this business and on the transition. Overall, Arrabawn has achieved high levels of efficiency and sustainability and is well placed for the future," he added.
Chairman Edward Carr said that 2023 was a challenging year for farmers through weather conditions, input costs and reduction in farm gate returns.
"However, Arrabawn's strong performance helped bolster against the worst of this by way of a very competitive milk price. It is also encouraging for our suppliers to see the financial performance of the co-op so strong, including a significant increase in shareholders’ funds. This endorses that the investment put in place is really working for our members," the chairman stated.
Headquartered in Nenagh in Co Tipperary, Arrabawn's largest base is across counties Tipperary, Offaly, Westmeath and Galway.
