A bounce in powder sales, improved agribusiness sales and a strong mart turnover helped reinforce western-based Aurivo’s financial results for 2020.
Turnover in dairy ingredients (powder mainly) jumped from €172m to €198m in 2020.
This underpinned a better overall financial position for Aurivo for 2020.
Agribusiness sales jumped from €115m to €128m and, despite COVID-19 restrictions, the marts business just dropped marginally from €67.5m turnover to €65.9m in 2020.
Insulated from COVID-19 restrictions the consumer foods turnover remained steady, moving from €95m to €97m turnover in 2020. The other big positive for Aurivo is that net debt moved from €18.8m to €2.2m (0.15 times’ earnings – down from 2.2).
Importantly group earnings (EBITDA)were €15.1m in 2020, an increase of 69.7% on €8.9m in 2019. Aurivo milk pool for 2020 was 477m litres – a growth of 5.5% on 2019. A large proportion of this is liquid milk (110m litres or 23%).
Consumer foods
Aurivo’s liquid milk plant in Killygordon, Co Donegal, processed 110m litres in 2020, an increase of 1m litres on 2019. As a “food-to-go” business, My Goodness Limited (trading as For Goodness Shakes), Aurivo’s sports nutrition business, was most affected by COVID-19.
Aurivo says sales of this product fell due to the implementation of remote working and the notable reduction in footfall across London. In 2015, Aurivo paid €40m for this product that is sold through retailers as a ready-to-drink sports nutrition product.
Dairy ingredients
The new dryer produced 25,000t of various grades of enriched milk powder. This improved the ability of Aurivo to process 35% extra milk per week in Ballaghaderreen.
Agribusiness
Aurivo’s agribusiness sales continued to grow in 2020, with a strong performance recorded across all categories in terms of both volume and revenue. Agribusiness delivered a sales turnover of €127.9m, an 11.2% increase on the previous year (2019: €115m).
Marts
Despite mart closures nationally from April 2020, Aurivo is reporting a turnover of €65.9m (2019: €67.5m) as the business moved online.
Retained profits
Chief executive Donal Tierney said the bounce back in the balance sheet from under €60m to €67m was driven by retained profits for 2021.
On the marts business, he also said: “Aurivo Marts performed very well given the challenges presented by COVID-19. Marts were closed for a period in April/May 2020 and then went online only for a long period. Overall cattle numbers were down 9% with the average price up 6.5%.
On any potential cap on peak milk supply, Tierney said: “Aurivo is contracted to take milk supply from a number of other co-ops in 2021. This, coupled with the growth from its own milk supply base (which is running higher than envisaged), will mean that the co-op will be close to capacity over peak, but it does not envisage a cap on members’ supply.”
Note: Aurivo will announce full-year financial results later this week for 2020. The annual report won’t be available for another few weeks so we will do a deeper analysis piece when published and available.
Ingredient sales (mostly powder) drove better financial numbers for Aurivo in 2020.Marts got very close to 2019 sales which is exceptional given the COVID-19 restrictions.Aurivo agribusiness sales rose considerably in lockdown (up €15m). Read more
Aurivo’s Mr Mart bows out
NI Milk League: Glanbia Ireland top with 30p/l base
Aurivo secures €3.3m milk contract with Aldi
Team dairy takes on Limerick hot shots
A bounce in powder sales, improved agribusiness sales and a strong mart turnover helped reinforce western-based Aurivo’s financial results for 2020.
Turnover in dairy ingredients (powder mainly) jumped from €172m to €198m in 2020.
This underpinned a better overall financial position for Aurivo for 2020.
Agribusiness sales jumped from €115m to €128m and, despite COVID-19 restrictions, the marts business just dropped marginally from €67.5m turnover to €65.9m in 2020.
Insulated from COVID-19 restrictions the consumer foods turnover remained steady, moving from €95m to €97m turnover in 2020. The other big positive for Aurivo is that net debt moved from €18.8m to €2.2m (0.15 times’ earnings – down from 2.2).
Importantly group earnings (EBITDA)were €15.1m in 2020, an increase of 69.7% on €8.9m in 2019. Aurivo milk pool for 2020 was 477m litres – a growth of 5.5% on 2019. A large proportion of this is liquid milk (110m litres or 23%).
Consumer foods
Aurivo’s liquid milk plant in Killygordon, Co Donegal, processed 110m litres in 2020, an increase of 1m litres on 2019. As a “food-to-go” business, My Goodness Limited (trading as For Goodness Shakes), Aurivo’s sports nutrition business, was most affected by COVID-19.
Aurivo says sales of this product fell due to the implementation of remote working and the notable reduction in footfall across London. In 2015, Aurivo paid €40m for this product that is sold through retailers as a ready-to-drink sports nutrition product.
Dairy ingredients
The new dryer produced 25,000t of various grades of enriched milk powder. This improved the ability of Aurivo to process 35% extra milk per week in Ballaghaderreen.
Agribusiness
Aurivo’s agribusiness sales continued to grow in 2020, with a strong performance recorded across all categories in terms of both volume and revenue. Agribusiness delivered a sales turnover of €127.9m, an 11.2% increase on the previous year (2019: €115m).
Marts
Despite mart closures nationally from April 2020, Aurivo is reporting a turnover of €65.9m (2019: €67.5m) as the business moved online.
Retained profits
Chief executive Donal Tierney said the bounce back in the balance sheet from under €60m to €67m was driven by retained profits for 2021.
On the marts business, he also said: “Aurivo Marts performed very well given the challenges presented by COVID-19. Marts were closed for a period in April/May 2020 and then went online only for a long period. Overall cattle numbers were down 9% with the average price up 6.5%.
On any potential cap on peak milk supply, Tierney said: “Aurivo is contracted to take milk supply from a number of other co-ops in 2021. This, coupled with the growth from its own milk supply base (which is running higher than envisaged), will mean that the co-op will be close to capacity over peak, but it does not envisage a cap on members’ supply.”
Note: Aurivo will announce full-year financial results later this week for 2020. The annual report won’t be available for another few weeks so we will do a deeper analysis piece when published and available.
Ingredient sales (mostly powder) drove better financial numbers for Aurivo in 2020.Marts got very close to 2019 sales which is exceptional given the COVID-19 restrictions.Aurivo agribusiness sales rose considerably in lockdown (up €15m). Read more
Aurivo’s Mr Mart bows out
NI Milk League: Glanbia Ireland top with 30p/l base
Aurivo secures €3.3m milk contract with Aldi
Team dairy takes on Limerick hot shots
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