Ornua, one of Ireland’s leading dairy companies, has published its operating and financial results for the 12 months ending 26th December 2020, with Group turnover reaching €2.3 billion.
Group EBITDA grew by 49.6 per cent to €107.4 million, driving a robust 69.2 per centincrease in Operating Profit to €83.1 million. This performance was achieved against the backdrop of a complex trading environment dominated by Covid-19, market volatility, and the macro-economic challenges of Brexit and punitive US tariffs.
Ornua exports to over 110 countries and owns the iconic €1 billion Kerrygold brand, which experienced 13 per cent volume growth in 2020, selling over 10 million packets of butter and cheese a week.
Commenting on the performance, John Jordan, CEO Ornua said: “Ornua had a unique performance in a unique year, and we are pleased to report a record profit with Operating Profit of +69 per cent. The strong fundamentals of our business – great people and great products – came to the fore allowing us to maximise the opportunity presented with the change in consumer behaviour, doubling down on driving profitable value growth against the backdrop of the global pandemic. This performance delivers on our commitment to maximise returns to our member co-operatives and the 14,000 farmers who supply them.
Ornua’s 60 years of experience navigating global trade stood to us in 2020, as did our balanced product portfolio, geographical spread across 110 markets, and strong financial foundations. Our branded and own-label portfolio benefitted from the change in consumer behaviour which saw Kerrygold volumes grow by 13 per cent which, coupled with our Ingredient’s business delivering positive year-on-year growth, enabled us to pay €68.7 million to our Member co-ops through the Ornua Value Payment.
Looking ahead, we are cautiously optimistic about the gradual re-opening of economies as the global vaccine rollout gathers pace; we have clarity on Brexit, and we welcome strong signals from the US on improved US/EU trade relations. This, coupled with Ornua’s clear and ambitious new 5-year strategy focused on driving
profitable growth in priority global markets, will ensure we continue to deliver value for the 14,000 Irish farming families we represent.”
Dairy markets proved resilient throughout the pandemic, aided by retail sales and strong demand for milk powders from China, Southeast Asia, and Africa. Product balance within commodity markets supported milk price stability with Irish milk price averaging above 30 cents per litre. Looking to 2021, Ornua noted that the outlook is largely positive with the market underpinned by foodservice recovery and strong export demand. Global milk output, John said, is likely to continue growing in 2021, with a projected growth of +1.3 per cent.
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