ArraTipp Co-operative has reported a strong performance for last year in its first annual report since the merger of Arrabawn and Tipperary Co-ops in February 2025.
Today's results cover the ten-month period from March to December and cover the initial phase of integration following the merger.
ArraTipp reported an operating profit of €14.1m for the 10 month period, up from €9.5m on a combined basis for the previous 14 months. EBITDA stood at €26.2m, while total overhead costs reduced "significantly" by 40%.
The co-op said it also strengthened its financial position, with net debt reducing from €78m to €53m, while its shareholder funds increased by €2.5m to €106m.
Its cashflow also improved from a negative €29.5m to a positive €6.1m position, the co-op added.
The co-op said it paid an average milk price of 47.1 cent per litre at base constituents 3.6% (fat) and 3.3%(protein). This places ArraTipp in the top one-third of the national milk price league table.
During the 10 month period, ArraTipp closed a cheese facility in Tipperary, which it said along with its broader cost reduction programme, resulted in a more efficient and streamlined organisation.
The integration of the two dairies enabled valuable shared learning between both legacy organisations, with a "best of both" approach emerging across teams and operations, it added.
ArraTipp said it three divisions - Dairy Ingredients, Tippagral (the France-based overseas cheese business), and Agri Trading - delivered strong performances during the past year.
It also said it continued to invest in its future, including capital investment across its Nenagh and Tipperary sites, supporting the development of new product offerings such as fat-filled milk powder and spray-dried caseinate. It also invested significantly in its Tippagral site in France.
The co-op also revamped three of its retail locations in Athenry, Killimor and O'Brien Street in Tipperary town, reflecting ongoing commitment to its Agri trading business, which continues to expand both in range and scale.
Looking ahead, ArraTipp said it is focused on maximising value from its significant whey pool, with investments aimed at optimising product mix and delivering improved returns for shareholders.
ArraTipp CEO Eamon O’Sullivan said today's results represent a strong first year for ArraTipp and are a clear reflection of the commitment shown by staff, shareholders and board during a period of significant change.
"While the year required difficult decisions and a sharp focus on cost reduction, we have emerged as a more efficient and resilient organisation. We are particularly encouraged by the performance across all divisions and the progress made in delivering synergies from the merger," he said.
"Looking ahead, we see significant opportunity across product range and the continued growth of our overseas business, with our investment in TippAgral providing a strong platform for further expansion," he added.
Edward Carr, the chairman of ArraTipp, said the successful integration of Arrabawn and Tipperary Co-op is a testament to the careful planning and disciplined execution by the management team.
"The Board is pleased with the progress made in year one, particularly in strengthening the financial position of the co-op. While there is more work to be done, the resilience and commitment shown across the organisation has laid a solid foundation for the future of ArraTipp," he added.
