Irish Dairy Board Reports Strong Financial Performance
The Irish Dairy Board increased turnover by 5% to over €2.1 billion and EBIT up 25% to €25.8 million in 2013. This strong operating performance enabled an €11 million bonus to be declared to members, an increase of 16% on the year prior.
The Irish Dairy Board (IDB) is an agri-food commercial co-operative which markets and sells dairy products on behalf of its members, Ireland’s dairy processors and the Irish dairy farmers. Headquartered in Dublin, the business employs some 3,100 people globally. It is responsible for exporting circa 60% of Ireland’s dairy products to over 100 countries. The IDB owns the Kerrygold brand, which is found in shops and in homes all around the world. Its brand portfolio also includes Pilgrims Choice, Dubliner cheese, and BEO, a popular milk powder sold in Africa.
IDB closed 2013 with a very strong balance sheet, with net assets of €417 million, debt free and with cash of €51.9 million, a strong financial base from which to support its business growth strategy.
In addition, in May 2013, the group made an exceptional payment of €2 million to an emergency fund for Irish dairy farmers in response to the unprecedented fodder crisis.
Kevin Lane, chief executive of IDB, comments: “I am pleased to report a very strong business performance in 2013, combining solid earnings growth across all divisions and enhanced product returns to our members. Our continuing investment in brand growth, New Product Development and in-market expansion is designed to ensure that our members and suppliers can expand on the basis of sustainable market demand.”
He continues: “The abolition of milk quotas in 2015 will present the Irish dairy industry with its first opportunity for meaningful expansion in the past 30 years. Our strategy is to ensure that IDB members and dairy farmers are optimally positioned to participate in this expansion opportunity through enhanced routes to market and sustainable, market led products.”
The IDB has also announced details of a new €30 million investment that will create 50 new jobs in Mitchelstown, County Cork. The 50,000 tonne capacity, fully integrated butter production and packing facility will also serve as an innovation centre for Kerrygold which has ambitious expansion plans post the abolition of milk quotas in 2015.