Irish dairy and ingredients supplier, Ornua has reported strong 2015 results, with group EBITDA growing by 18 per cent to €58.8 million, and an increase in group turnover of 9 per cent to €2.5 billion.
It closed the year with a net debt of €17 million, and what it describes as a strong balance sheet with net assets of €526 million, up 21 per cent on the previous year.
2015 was considered a challenging year for the dairy industry, in which it faced a combination of strong supply and weak demand, driving a fall in global prices. Globally, milk supply grew by over 5 per cent from January 2014 to December 2015, while demand only grew by 3 per cent.
Kevin Lane, CEO of Ornua commented on the results, “We are confident that, whilst recognising the challenging market conditions that exist, our business will continue to deliver strong returns and growth thereby enhancing value for the farmers we represent."
Some of Ornua’s operational highlights for 2015 include seeing its Kerrygold brand reach retail sales of around €740 million, with it being named the No. 1 butter brand in Germany and No.3 in the US.
It also invested in and strengthened its global infrastructure, enhancing its teams in China, the Middle East and Africa, and acquiring Shanghai-based, Ambrosia Dairy.
The group disposed of its majority stake in US distribution business, DPI Specialty Foods, which yielded significant proceeds for the business, some of which it says will be invested into opening new routes to market for Irish dairy.
* Article by Jenny Whelan