Dairygold Sees Modest Gains Amid Challenging Market Conditions
Source: dairynews.today
Dairygold experiences slight uptick in revenue and profit in 2024, despite reduced milk output and challenging market dynamics.
Cork-based dairy processor Dairygold has reported a slight increase in revenue and profit for 2024, attributed to improved conditions in the dairy market.
Despite a decrease in overall milk output and lower prices for feed and milk, the company saw its turnover rise by €10.6 million, reaching €1.43 billion.
This follows a significant €254.7 million drop in revenue during 2023 due to adverse market conditions. Operating profit also grew significantly at Dairygold, reaching €37.1 million, up by 55% from the €23.9 million achieved in 2023, albeit still behind the €40 million profit made in 2022.
Chief Executive Michael Harte emphasized the company's efforts towards efficiency and automation, which is expected to result in a reduction of up to 70 jobs through "attrition." However, the firm's bank debts climbed for the third consecutive year, rising to €157.3 million. The net bank debt to Ebitda ratio stands at 2.4:1, which the company deems "very manageable."
Dairygold reported challenging weather conditions in Ireland during the first half of 2024, resulting in a 2.1% reduction in milk supply from its members, totaling 1.38 billion liters.
Dairy Ireland, a subsidiary, saw a 4% increase in turnover to €830 million, despite sales volumes returning to 2023 levels. The average milk price paid rose by 6 cents per litre to 44.9 cpl.
Nonetheless, the sector faced some price declines, as noted by Harte, due to a drop in birth rates in China impacting the demand for infant formula products.
This led to an oversupply issue, affecting returns from demineralised whey, a Dairygold product used in such formulas.
Despite a decrease in overall milk output and lower prices for feed and milk, the company saw its turnover rise by €10.6 million, reaching €1.43 billion.
This follows a significant €254.7 million drop in revenue during 2023 due to adverse market conditions. Operating profit also grew significantly at Dairygold, reaching €37.1 million, up by 55% from the €23.9 million achieved in 2023, albeit still behind the €40 million profit made in 2022.
Chief Executive Michael Harte emphasized the company's efforts towards efficiency and automation, which is expected to result in a reduction of up to 70 jobs through "attrition." However, the firm's bank debts climbed for the third consecutive year, rising to €157.3 million. The net bank debt to Ebitda ratio stands at 2.4:1, which the company deems "very manageable."
Dairygold reported challenging weather conditions in Ireland during the first half of 2024, resulting in a 2.1% reduction in milk supply from its members, totaling 1.38 billion liters.
Dairy Ireland, a subsidiary, saw a 4% increase in turnover to €830 million, despite sales volumes returning to 2023 levels. The average milk price paid rose by 6 cents per litre to 44.9 cpl.
Nonetheless, the sector faced some price declines, as noted by Harte, due to a drop in birth rates in China impacting the demand for infant formula products.
This led to an oversupply issue, affecting returns from demineralised whey, a Dairygold product used in such formulas.
