Ornua turnover up 36.7% to €3.4 billion
Image: Ornua
Ornua, Ireland’s largest exporter of Irish dairy products, published its operating and financial results for the 12 months ending 31 December 2022 with group turnover reaching a record €3.4 billion, which is up 36.7%, the company says. Ornua exports to over 110 countries and is the owner of the Kerrygold brand, which celebrates 60 years and sells over 11 million packets of butter and cheese each week. The brand’s impact was strengthened by the launch of 16 new Kerrygold products and product extensions in key markets such as Germany, the US, and the Middle East.
Ornua delivered a brand premium and bonuses paid to member co-operatives with a €72.5 million value payment. There has been €2.3 billion Irish dairy products purchased (387,000MT), with €555 million in working capital facilities provided to member co-operatives. Expansion of Kerrygold Park is underway, which will see the production volume double at the facility, responding to growing demand in global markets. The output amounted 16,500 containers of Irish dairy ingredients sold and shipped globally last year.
John Jordan, CEO, Ornua said: “Ornua continued to build on its strong and consistent growth trajectory, delivering a robust performance in what was a uniquely challenging year with factors such as rising inflation impacting the entire supply chain. Ornua responded to these shifting market dynamics by remaining focused on our strategy and committed in our efforts to deliver for customers, consumers and our member co-operatives. This is reflected in the exceptional sales performance, underpinned by the hard work and commitment of our 3,000-strong global team.
“We are very optimistic for the future of our brands and our business, supported by a newly-remodelled five-year strategy, focused on addressing emerging challenges and opportunities to drive sustainable growth in key markets, ensuring we continue to deliver value for our Member Co-operatives and the 14,000 Irish dairy farming families we represent.”
Looking at the year ahead, it is expected that Irish dairy supply will be modestly ahead of 2022. Milk supplies are currently ahead of demand, but markets are likely to stabilise in the coming months. Volatility looks set to continue in the areas of energy and input prices however, and an uncertain global economic forecast, and its potential impact on consumer spending, will also present challenges.
Persistent challenges around rising input costs, inflationary pressures, and supply chain issues, as well as macroeconomic factors such as geopolitical uncertainty and climate change continue to cause market disruption. In late 2022, the Ornua board of directors approved a new five-year strategic plan for the business, Path to Prosper, which will now guide Ornua to 2027, the firm says. It aims to stimulate continued sustainable growth for Ornua, building on the consistent progress and success achieved by the business in the last number of years, while responding to new and emerging opportunities and challenges.