Dairygold Faces 43% Profit Drop Amid Global Dairy Market Decline

Dairygold Co-Operative Society Ltd reported a 43% decline in operating profit for the year 2025, according to its latest annual report. The company, known for producing butter and ingredients, cited a 'significant deterioration' in the global dairy market starting from August 2025 as a major factor affecting its profitability.

Despite these challenges, Dairygold saw a 10% increase in turnover, reaching €1.54 billion, compared to 2024. However, this was offset by a 13% increase in the cost of sales, amounting to €1.27 billion, and a rise in operating costs from €219.1 million in 2024 to €228.2 million in 2025.

The average milk price paid by Dairygold in 2025 was 53.8 cents per litre, inclusive of various payments and VAT. Additional depreciation costs contributed to an operating profit of €21.3 million, down from €37.1 million in the previous year.

Chief Executive Michael Harte highlighted the severe impact of declining returns from dairy products like cheese and butter, which significantly affected both Dairygold and the broader dairy industry. Despite this, the company focused on operational efficiency, achieving €8.5 million in cost savings through its Business Optimisation Programme.

In 2025, Dairygold invested €37.4 million in capital expenditure and successfully reduced its net bank debt by €22 million to €135.3 million. The net asset value of the society at the year's end was €422.4 million.

Positive market dynamics and favourable weather conditions contributed to a 4% increase in milk production, with suppliers delivering a total of 1.44 billion litres of milk.