Aurivo has announced full-year financial results for the year ended 31 December 2018.
2018 saw the largest investment in the history of the co-operative with new capital investment of €22m - just the beginning of a €48m five-year investment programme.
Turnover for the year was €443.8m - an increase of 4% on FY 17 (2017: €426.4m); Aurivo reported a Group operating profit (before exceptional items) of €3.0m - a drop of 23% (2017: €3.9m).
- €48m, five-year capital investment programme underway;
- 439m litres of milk processed – a record year equating to a 7.8% growth on 2017;
- Fourth Fixed Milk Price Scheme launched;
- Improved market returns saw the average Aurivo quoted milk price recover to 32c/L;
- A solid year for new product development and innovation across the business.
"A diverse co-operative"
Aaron Forde - Chief Executive of Aurivo - said, “2018 was a challenging year for the Irish dairy sector. Weather conditions at this point have been well documented and these were further compounded by volatility in global markets.”
He noted that the uncertainties and implications of Brexit pose significant challenges to the sector.“Within that environment, our focus as a diverse co-operative will continue to be on growing a sustainable business that will not only create value for our members but will ensure a certain future for our farms, and our communities for generations to come.”
Pat Duffy - Chairman of Aurivo – said: “2019 will see us further expanding our business as we continue to be one of the strongest member-owned organisations in the country.”
Business performance overview:
Processing 112 million-litres of milk and with a portfolio of sales across milk, butter and sports nutrition, turnover remained steady for the consumer business at €98.8m (2017: €99.1m).
Its nutrition business - operating under the For Goodness Shakes brand - reported another strong year of growth with sales up by 20%.
Dairy Ingredients had a "strong year" with turnover growing at the business to €153.4m (2017: €143.5m).
It was another record year for milk processing with 439-million litres processed in total, of which 327 million-litres were allocated to dairy ingredients as manufacturing milk processed into milk powders and butter - an increase of eight-million-litres processed in 2018 - equating to 7.8% growth on 2017.
Aurivo’s Agribusiness had a stellar year reporting turnover of €120.7m - an 18% increase on 2017 (2017: €102.1m). Homeland store sales were up 15% on the previous year and fertiliser tonnage up 16%.
To support its farmers through the difficult fodder crisis of 2018, Aurivo sourced fodder from other EU member states and assisted farmers in completing their fodder budgets.
Aurivo’s Farm Profitability programme - supporting farm efficiency and aiding knowledge transfer - grew "from strength-to-strength" in 2018.
Meanwhile, 2018 saw the opening of Aurivo’s 35th Homeland Store – an online e-commerce store - Homeland.ie.
It was “an extremely challenging year” for Aurivo’s Livestock Marts; turnover at the business was €71.0m (2017: €81.6m).
“Following an incident in Mohill Mart, the business made a prudent decision to carry out a complete evaluation of each mart that resulted in a substantial investment to facilitate enhanced safety operating procedures.”