Carbery
Turnover at the west Cork-based co-op decreased by 0.5% to €316.6m last year. Operating profits fell by 4% to €12.7m. Carbery is heavily weighted towards cheese, and accounts for about 25% of the Irish cheese output. Therefore any change on the global cheese market (which fell back around 25% last year), can have a significant impact on Carbery’s performance. The Synergy business boosted performance.
The co-op maintained a strong milk price and this affected operating profits. Operating margins were 4.0%. The co-op has invested about €20m in the past few years to prepare for the abolition of quotas. At year end, net debt was €34.5m, a decrease of €5.8m (14%), while net asset value increased €23m (16%) to €168m.
GII
The country’s largest milk processor, with about 30% of the milk pool, saw its turnover increase 2.1%, driven by a 4% increase in volume and 2% fall in prices.
Despite this turnover increase, operating profits fell by 14.2%, mainly as a result of supporting the milk price. Operating margins, at 3.9%, were down from 4.6% a year earlier. 2014 was a significant year of construction at GII, and saw its net debt increase. The strong cashflows will be used to reduce the debt over the coming years. At year end, net debt increased €60m to €172m, mainly due to a large capital investment programme, amounting to some €235m in recent years. The net asset value increased €11m (6.5%) to €181m.
Dairygold
The largest farmer-owned dairy processor recorded turnover of €848.8m, which was in line with 2013, despite the substantial drop in global dairy market returns in the second half of the year. The society supported milk price during the year, as seen in the summary of results on page 17, alongside reporting an operating profit, in line with the prior year, of €27.5m. Operating margins were 3.2%. The society has invested €163m in the business over the last six years while maintaining a prudent level of net debt, which at year end was €71.6m, an increase of €10.7m. The society’s net asset value increased €6m (2%) to €280m.
Aurivo
Despite turnover falling 15% to €447m, as a result of lower global commodity prices, operating profit increased 24% to €6.3m. This is before a €2.6m benefit arising from a reduction in the pension liability following a sector 50 application.
Operating margins were 1.4%. Year-end net debt was significantly reduced by €11.5m to €1.4m. The shareholder funds decreased €0.5m (1%) to €38.2m as a result of an adjustment to the pension fund. Net of the pension liability, the net asset value increased €0.5m (1%) to €44.5m. Quoted investments are carried at €700,000, but have a market value of about €18m.
Arrabawn
Overall, turnover fell 3% to €213.1m, mainly as a result of lower volumes of feed as 25% of the business relates to agri-trading. The dairy business saw revenues increase 5% to €158.2m, driven by a 10% increase in volumes with a 5% fall in prices. Operating profits increased 60% to €4.4m with operating margins increasing from 1.3% in 2013 to 2.1% last year. With a large dependence on oil, the reduction in oil prices significantly helped margins where fuel costs were back 8%. Net debt at year end decreased €0.9m to €9.3m. The Net asset value increased €4.4m to €41.9m.
Lakeland
Turnover increased 15% to €625.8m. The main driver was in the food ingredients division, which accounts for 60% of the business and saw revenues increase by 22%, on the back of a 9% increase in milk volumes. About one-third of Lakelands milk volumes come from Northern Ireland.
Operating profit increased by 10% to €12.9m, resulting in an operating margin of 2.1%. During the year Lakeland had capital expenditure of €24m (€14m 2013). Net asset value increased by €3m to €21.5m. Net debt at year end was €38m, a decrease of €12.8m.
Tipperary
Turnover increased 13% to €190.9m, while operating profit increased 40% to €2.5m. The profit improvement was achieved in the context of processing extra milk volumes, alongside maintaining tight control of overhead costs, and a good performance in Tippagral, its French subsidiary company. Despite this, operating margins were 1.3%.
Total milk supply grew 15%, with milk coming from other co-ops (accounting for 50% of the total volumes) increasing 29%. Cheese utilises about 50% of the milk taken in. Net asset value increased €1.2m to €28.5m. Net debt at year end decreased €7.8m to €5.5m.
Town of Monaghan
As Town of Monaghan is currently finalising a proposed merger with Ballyrashane Co-op, it has yet to publish 2014 accounts. Headline figures were reported to the Irish Farmers Journal for 2014. Turnover decreased 6.3% to €205.5m. Cost of sales decreased 3.2%, leaving a gross margin of €25.4m, a decrease of 23% on 2013. In 2013, on sales of €219.2m, it made an operating profit of €4.96m, 2.3% margin.
Net cash at year end 2013 was €22.4m. Quoted shares are in the balance sheet at cost of €0.49m, so they are scarcely reflected in the €34m net current assets. Net asset value at year end 2013 was €43m.
Kerry Group PLC
Kerry Group saw turnover decrease 1.4% to €5.8bn last year, despite volume increases of 2.4%. The ingredients and flavour business, which accounts for 74% of turnover, recorded sales of €4.3bn and a 3.4% growth in volumes. Revenue in the consumer foods division fell by 5.8% to €1.5bn, with volumes back 0.7% and pricing back 0.6%.
Group trading profits increased 4.1% to €636m, while group trading margins increased 60 basis points (bps) to 11.1%. Adjusted diluted EPS increased 8.2% to 278.6c. Negative currency headwinds affected revenues by 0.5%. Net debt at year end increased €112m to €1,195.3m.
Glanbia PLC
Glanbia saw its total group earnings grow 7.9% to €245m in 2014 on the back of increased sales of €3.5bn, up 6.9% on the previous year. Performance nutrition continued to be the strongest performer with revenue growth of 13.5% to €746.2m.
Against a background of challenging dairy markets, the ingredients division saw revenues increase 9.3% to €1.17bn. This was driven by an increase in prices of 10.9%, which made up for a 1.6% decline in volumes. Capital expenditure and acquisitions totaled €222m during the year. At year end the Group had a net debt position of €510m compared to €374m in 2013, as a result of acquisitions.
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