Aurivo Co-op has posted lower profits for 2015, with the co-op's operating profit falling by 55% (€3.7m), its 2015 financial results show.
According to the co-op's results, the fall in profit coincides with the co-op's largest ever milk supply, with the volume of milk collected in 2015 jumping 12% on 2014 levels.
It reports that 2015 was a volatile one for the entire dairy sector, but it made strides to strengthen the co-op across each of its business areas.
And, as a result the revenues generated from Aurivo marts and consumer foods increased by €5.5m and €5.1m respectively.
The improvement in consumer foods was due to growth in both milk and butter, on the basis of volume and brand growth, it reports.
The co-op also reports good returns from its investment portfolio, especially from the For Goodness Shakes brand.
- Group annual revenues at €420m (2014: €447m)
- Group operating profit at €3.03m (2014: €6.73m)
- Consumer foods revenues at €80.4m (2014: €75.3m)
- Dairy Ingredients revenues at €99.5m (2014: €135.8m)
- Agribusiness revenues at €101.4m (2014: €102.8m)
- Marts revenues at €86.5m (2014: €81.0m)
- Other activities’ revenues at €52.1m (2014: €52.1m)
- Total equity/ Net assets at €56.8m (2014: €56.9m)
Aurivo Chief Executive Aaron Forde said that Aurivo produced a solid financial performance, demonstrating the strength of the business in two important respects; Aurivo ended the year with a strong balance sheet and supported its dairy member owners significantly on milk price.
Forde also said that Aurivo delivered good performance across its consumer foods business, agribusiness, livestock marts and investment portfolio.
Milk supply increased by some 12% since April, resulting in a record year for milk processed at our dairy facilities.
"For Aurivo and its owners, it is vital that each component of the supply chain is strong enough to sustain volatile conditions," he said.
Also commenting on the results, Aurivo Chairman, Tom Cunniffe said that the co-op made good progress in 2015, despite volatile conditions across the dairy sector.
"It was a year of continued delivery - for brand growth, processing record volumes and the delivery of enhanced business efficiencies, while also supporting milk price for our dairy member owners.
However, Cunniffe said the co-op is expecting a challenging year ahead, but with a lean operational footprint, Aurivo is well positioned to deliver for members.