Aurivo Reports Decline In Revenue, Operating Profit In FY 2023
Source: The DairyNews
In its fiscal year 2023, Irish dairy cooperative Aurivo faced a notable decline in both revenue and operating profit, highlighting the impact of various market factors on its performance.
Operating profit plummeted by 71.4% to €5.1 million, a sharp decline from €17.8 million in the previous fiscal year. This downturn was primarily attributed to a significant drop in milk prices throughout the year, coupled with a decline in fertiliser sales, as per media reports.
Revenue for the fiscal year amounted to €638.6 million, marking a year-on-year decrease of 16.4% from €764.2 million in 2022. Additionally, the cooperative's earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a substantial decline of 43.8%, reaching €14 million compared to €24.9 million in 2022.
Despite these challenges, Aurivo's chief executive officer, Donal Tierney, emphasized the cooperative's resilience, characterizing its performance as "robust" in the face of adversity. He reiterated Aurivo's unwavering commitment to its strategic priority of building a sustainable future for the business.
The average milk price paid to farmers witnessed a significant decline of nearly 30% year-on-year, falling to 43.1c/L in 2023 from 61.4c/L in the previous year. Within Aurivo's operations, turnover in the dairy ingredients division declined by 30.6% to €340.4 million, while the agri-business division reported a 13.9% decrease to €161.7 million. However, the consumer foods division experienced a slight increase of 0.3% in turnover, reaching €137.5 million.
Despite the overall decline, there were positive developments within the company, notably the sales growth of Connacht Gold, which increased by 14% in 2023 and nearly a quarter since 2021.
Looking ahead, Aurivo anticipates a more promising outlook for 2024, both for the cooperative and the sector at large. The company remains committed to prudent business management, continued support for its farmer members, and strategic investments for future growth.
Tierney emphasized, "Our focus continues to be on the delivery of ongoing value to our members, customers, and the communities we serve and operate in," underscoring Aurivo's dedication to long-term sustainability and stakeholder engagement.
Revenue for the fiscal year amounted to €638.6 million, marking a year-on-year decrease of 16.4% from €764.2 million in 2022. Additionally, the cooperative's earnings before interest, taxes, depreciation, and amortisation (EBITDA) saw a substantial decline of 43.8%, reaching €14 million compared to €24.9 million in 2022.
Despite these challenges, Aurivo's chief executive officer, Donal Tierney, emphasized the cooperative's resilience, characterizing its performance as "robust" in the face of adversity. He reiterated Aurivo's unwavering commitment to its strategic priority of building a sustainable future for the business.
The average milk price paid to farmers witnessed a significant decline of nearly 30% year-on-year, falling to 43.1c/L in 2023 from 61.4c/L in the previous year. Within Aurivo's operations, turnover in the dairy ingredients division declined by 30.6% to €340.4 million, while the agri-business division reported a 13.9% decrease to €161.7 million. However, the consumer foods division experienced a slight increase of 0.3% in turnover, reaching €137.5 million.
Despite the overall decline, there were positive developments within the company, notably the sales growth of Connacht Gold, which increased by 14% in 2023 and nearly a quarter since 2021.
Looking ahead, Aurivo anticipates a more promising outlook for 2024, both for the cooperative and the sector at large. The company remains committed to prudent business management, continued support for its farmer members, and strategic investments for future growth.
Tierney emphasized, "Our focus continues to be on the delivery of ongoing value to our members, customers, and the communities we serve and operate in," underscoring Aurivo's dedication to long-term sustainability and stakeholder engagement.
