Carbery Group reports increase in profits of 6% for 2016

Carbery Group has reported an increase in earnings before interest, taxes, depreciation and amotisation (EBITDA) to €37m on turnover of €340m for 2016.

EBITDA increased by 4.8 per cent, up from €35.3m in 2015. Turnover for the year was down slightly at €340m compared to €349.5m in the previous year.

The Group is reporting operating profit before interest, tax, amortisation and exceptional items (EBITA) of €27.1m (2015: €25.5m), reflecting a year-on-year increase of 6 per cent. On a constant currency basis, EBITA increased by 9 per cent year on year.

Continuing on course with the group’s growth strategy, the Carbery Group invested €15.4m in its dairy and ingredients departments during 2016, increasing the total investment made by the company since 2011 to €78.2m.

By Division

Carbery’s dairy business in Ireland recorded good margins and expansion in both its ingredients and cheese divisions, in spite of lower prices for cheese during the year. The volume of milk processed at Ballineen in 2016 was up 4.4% to 470 million litres.

Carbery’s ingredients division has developed new business in high-value fields such as infant nutrition and clinical nutrition.

Carbery Group’s international flavour and natural extracts division, Synergy, has recorded good growth in its main customer markets of the UK, Europe, the USA, South America and south-east Asia.

Outlook

The outlook for the Carbery Group business is reportedly positive for 2017, given its strong and dynamic dairy, ingredients and flavours business divisions.

 

 

 

Some recent Carbery Group responsibility initiatives and investments.

Sustainable Development Goals (SDGs)
On 1 January 2016, the 17 Sustainable Development Goals (SDGs) officially came into force. Over the next fifteen years countries will mobilize efforts to end all forms of poverty, fight inequalities and tackle climate change, while ensuring that no one is left behind. The new Goals recognize that ending poverty must go hand-in-hand with strategies that build economic growth and addresses a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection.

Governments will be busy for the next 15 years working to achieve the goals, but that doesn’t mean all the work falls on them. The private sector can help accelerate the achievement of the SDGs. Carbery is committed to playing our part in achieving the sustainable development goals. At Carbery, we have a special focus on; life on land, responsible consumption & production, industry innovation and infrastructure, sustainable communities and gender equality. To find out more on our initiatives, and the role Carbery is playing, please contact Sinead Treanor, Sustainability Manager on streanor@carbery.com

Carbery delivers on its green 50 pledge

Carbery delivers on its Green 50 pledge by diverting 15% less waste to landfill, achieving an actual total weight reduction of 22.5 metric tonnes compared to 2015 levels. Green 50 is a not-for-profit initiative whose mission is to raise money for charities through the promotion of green practices. The ‘Jeep for Jason’ West Cork Rapid Response was the selected charity, and Carbery donated a €2,000 cheque from their waste savings initiative. In doing so, Carbery became the first Irish company to fulfill its Green 50 pledge.

Carbery Group 2015 Financial Results

Carbery Group has reported strong results across all divisions for the year ended 31 December 2015 while continuing to pay industry leading milk prices to its suppliers.

Carbery’s earnings before interest, tax, depreciation and amortisation (EBITDA), increased by 33% to €35.3 million, up from €26.5 million in 2014, on an increased turnover of €349.5 million (2014: €316.6 million). Operating profit, before amortisation and exceptional items, increased to €25.5 million in 2015 from €18.3 million in 2014.

An exceptional credit of €6 million reported in the 2015 accounts relates to the sale of Carbery’s 50% stake in the Nutrifont joint venture in Brazil.

Following the removal of milk quota restrictions in 2015 milk supplies from Carbery’s West Cork shareholder suppliers increased by 13% in the 2015 calendar year to 450 million litres. For the full year post quota to the end of March 2016 milk supplies were up 18%. In a year when milk prices were weaker across the dairy sector West Cork suppliers again benefited from Carbery’s industry leading price. The continuing ability to deliver a competitive milk price for shareholder suppliers, whilst also significantly increasing shareholder value, illustrates the successful progress the Group continues to make across its growing international food ingredients and flavour businesses.

Re-investment in the business remains critical to Carbery’s growth plans and during 2015 group capital expenditure amounted to €20 million. Amongst other projects, this includes an investment in an Enterprise Resource Planning (ERP) project for Synergy, Carbery’s international flavour and natural extracts business.

The group’s net debt position at 31 December 2015 was reduced by 20% to €27.8 million (2014: €34.5 million).

The increase in 2015 operating profit is attributable to increased earnings in Carbery’s ingredients division partly offset by lower earnings in Carbery’s dairy division. Earnings growth in the ingredients division is due to year on year earnings growth in Carbery’s nutritional ingredients business as well as strong organic growth in the Synergy division. The lower reported earnings in the dairy business is primarily due to Carbery paying an industry leading milk price to its suppliers in increasingly challenging global dairy markets.

Carbery achieves major success at the International Cheese Awards

Carbery cheese won five gold, four silver and three bronze medals at the 2015 International Cheese Awards which took place on the 28th July 2015, in the market town of Nantwich, near Manchester, England. Dubliner, special reserve cheddar, half fat and Dubliner butter all won gold with other cheese types manufactured in Ballineen winning silver and bronze awards in their relevant classes. Carbery was also awarded the prestigious Dale Farm Trophy for its renowned Retail Mature Cheddar Cheese.

The International Cheese Awards is the largest cheese show in the world and a highly competitive global event, attracting 4,615 entries from 31 different countries in 2015. Cheese-makers and retailers throughout the industry make a special effort to attend the show and appreciate the recognition achieved through winning a medal.

These latest wins for Carbery add to an already impressive number of accolades and awards achieved at various international events in recent years.

The awards are a great boost for Carbery’s cheese facility in Ballineen, one of the largest cheese-producing facilities in Ireland. The plant produces almost 25% of Ireland’s annual cheddar cheese output, including products such as the Dubliner brand, cheddar, reduced fat cheeses and Red Leicester.

Speaking of the recent wins, Dermot Curtin, Carbery Group Cheese Production Manager, said: “Last week’s wins are a great morale boost for all of us at Ballineen, where a huge importance is placed on ensuring the quality of our cheese is every bit as good as the reputation that precedes it. As one of Ireland’s leading producers of cheeses for the retail, ingredient and foodservice sectors, it is fantastic to see our cheeses being acknowledged for their quality by our peers in the industry.”

Weight management: paving the whey for a healthier lifestyle

Carbery’s Aine Hallihan examines new initiatives to highlight the role of diet and exercise as a way to achieve a normal weight and create healthier nations.

According to the World Health Organisation (WHO), obesity has been identified as a leading risk for global deaths, especially when taking into consideration the impact of associated diseases such as cardiovascular disease, type 2 diabetes and inflammatory diseases.
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