Aurivo sees operating profits increased by 236% to €17 million

DESPITE the very difficult weather conditions on farm in the early part of 2024, the ongoing geopolitical issues and inflationary pressures, Aurivo delivered a very strong financial performance for 2024.

Group turnover increased by 13.5% on the prior year at €725.1m., which was underpinned by a strong operational performance across each of the co-op’s business units.

Operating profit for the year was at €17m., an increase of 236.1% on the previous year (2023: €5.1m). EBITDA for 2024 was €27.3m., an increase of 94.8% on 2023.

Marts turnover for the year was up 13.8% to €117.3m.

The group announced its full-year financial results for the year ended December 31, 2024, this morning.

Operational highlights included:

* Investment of €8.8m on capital expenditure in 2024.

* Total milk volume collected bucked the national trend and finished marginally up on 2023, by 1.5% to 516m. litres.

* A very strong manufacturing milk price was paid to Aurivo suppliers in 2024, averaging 52.9cpl, an increase of 23% on 2023 (2023: 43.1cpl).

* Reinitiated a milk stability fund of €3m. to help manage potential volatility in the future.

* Twenty-four new dairy entrants in 2024.

Commenting on the results, Donal Tierney, chief executive of Aurivo, said: “Following a very difficult 2023 for the entire Irish dairy sector, I am pleased to report that in 2024, Aurivo reported a very strong financial performance. 2024 was a year of steady progress and it puts us in good stead to face the challenges that lie ahead in 2025.

“The current global situation relating to tariffs and the consequent uncertainty over the past number of months is concerning for the sector and the wider economy as a whole with some global commodity markets (notably oil and metals) very volatile in the past few months. Notwithstanding the inevitable headwinds that face us, we believe the strategic and financial position of the co-op provides a sound basis to deliver ongoing sustainable growth for our member owners.”

Chairman Raymond Barlow added: “A key highlight for the year was the resilience of our milk supply, with our farmers navigating the challenge of adverse weather conditions for a large part of the year. We were happy to have been in the position of maintaining a competitive average milk price for our suppliers over the course of the year.

“Cognisant of the challenges that face the wider economy, we are prepared to adapt to same. Through prudent management, ongoing strategic investments and a steadfast commitment to supporting our farmer members, we will continue to position ourselves for long-term growth and resilience.”

BUSINESS PERFORMANCE REVIEW

Consumer Foods: Another strong year, with revenues up by 15.1% to €158.3m (2023: €137.5m).

On the back of the successful integration of the Arrabawn liquid milk and butter van sales business, Aurivo’s liquid milk sales increased by 15% year-on-year and branded conventional milk sales grew by 39%, with Organic For Us branded milk growing by 52%.

The new product development team also launched Connacht Gold Mór Protein drinks during the summer.

Connacht Gold retail butter sales volumes grew by 16%.

Dairy Ingredients: Revenues increased by 22.5% to €289.6m (2023: €236.3m). Twenty-four new entrants were welcomed by Aurivo into dairy - over 20% of all new entrants to dairying in the Republic of Ireland in 2024.

In response to emerging customer trends, Aurivo’s new product development team in Ballaghaderreen developed 12 new products. The business unit also made good progress on the strategic goal of broadening its geographic footprint with Sount East Aisa now accounting for 10% of sales, having grown from zero in 2022.

Agri Business: Despite challenging weather conditions during spring, Aurivo’s Agribusiness unit delivered a strong performance where revenues of €159.9m were broadly in line with the previous year (2023: €161.7m).

Aurivo’s feed mill achieved record production levels in 2024, with a 13% increase in feed volume, reflecting the success of the €6.2m investment in infrastructure over the past five years.

The Homeland retail network delivered a 3% increase in transactions in 2024. while a successful upgrade in Homeland’s online platform marked a significant step forward in the business’ retail strategy.

Livestock Marts: Aurivo’s marts continued its upward trajectory of recent years, with revenues increasing by 13.8% to €117.3m in 2024 (2023: €103.1m).

Pricing for cattle and sheep was very strong throughout the year and despite a 5% drop in the national suckler herd, the volumes through Aurivo marts were up.

Throughput at year-end stood at just over 79,000 cattle and 83,000 sheep, an increase of 5% on cattle and 27% on sheep compared to 2023.