Carbery operating profit up 20% after ‘strong financial performance'
Group turnover also increased for the year ended December 31, Carbery said.
Revenue increased by 8% to €668 million, while group EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 12% to €52 million.
Carbery reported an operating profit of €24.8 million, an increase of €5.2 million, or 20%, from 2023.
The group said that its performance allowed it to set aside €8.6 million for its Stability Fund 'to support milk price if needed in the future'.
Carbery paid its second-highest annual average milk price on record in 2024. Also, €4.7 million was paid to farmers for sustainability actions undertaken in 2024 under the FutureProof sustainability bonus, bringing the total paid out under that bonus to €12.2 million since it started in 2022.
93% of Carbery's milk pool is coming from suppliers who participate in the FutureProof programme.
Carbery said that, after a challenging opening to the year due to bad weather conditions, milk supply recovered, with its suppliers producing 574 million litres of milk in 2024.
The business noted that flexibility in producing both mozzarella and cheddar 'has become crucial' in managing Carbery's cheese business and 'maximising returns'.
Carbery said its taste division went 'from strength to strength' due to a focus on business development and increased consumer demand.
Record performance in the division was seen in all regions as the group consolidated its position with existing customers and accelerated the business in certain growth categories, the group said.
Investment in Asia 'continues to deliver', with a growing office in Singapore 'driving demand and growth across target segments'.
In the nutrition division, Carbery said that the global whey protein market continued to experience growth in 2024, and that the business 'is well positioned to capitalise on this growth with an extensive range of products…catering to various segments, including infant formula, sports nutrition, and clinical nutrition'.
On sustainability, Carbery said it reduced its 'scope 1' emission (direct business emissions) and 'scope 2' emissions (emissions from the purchase of electricity and other business inputs) by a combined 3.09%, while on-farm emissions among suppliers fell by 1.56%.
Commenting on the 2024 results, Carbery chief executive officer (CEO) Jason Hawkins said: '2024 was a year of strong, balanced performance across every part of our business. I am pleased to report revenue growth driven by positive dairy markets but also very strong organic growth and performance across our global business.
'Every division – nutrition, taste, and dairy – delivered growth, showing the strength of our diversified model. That performance enabled us to deliver value for our farmer shareholders and to invest in growth opportunities across the business.'
'We are proud to report a continuing reduction in our emissions as we look at avenues to achieve further reductions in the years ahead, in line with our commitment to science-based targets,' Hawkins said.
'Our farmer shareholders also recorded a reduction in their emissions, and need to be commended for continuing to prioritise sustainable actions on their farms, while balancing challenges such as weather and input costs,' he added.
On the outlook for 2025, the Carbery CEO said: 'I am pleased with our healthy financial position and believe we can build on this performance, putting us in a strong position to capitalise on growth opportunities. Any investment across our business is supported by a strong balance sheet.
'That said, we must balance this activity with the challenges that may emerge in the global economy and manage the uncertainty in the outlook for global markets. We will always make decisions based on the long-term success and viability of the company. Even with current challenges, we are well positioned to achieve long-term success,' Hawkins commented.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Agriland
01-08-2025
- Agriland
Carbery Teams Up with European Agency to Trial New Methane Reducing Tech
Carbery has teamed up with the European climate innovation agency, Climate KIC, to trial "next-generation methane-reducing technologies" on 10 additional dairy farms in west Co. Cork. The research project has secured financial backing of €700,000 and will see the 10 farms trial new technologies, such as a treatment for improving manure management and satellite technology to map biodiversity and expand the research which is already underway as part of the Farm Zero C initiative. The Carbery group, together with BiOrbic, are among the key partners in the Farm Zero C project which aims to "create a climate-neutral, economically-viable dairy farm". The working farm acts a "living lab" for not just researchers but also farmer and policy makers. It has already trialed a number of innovations including carbon sequestration, renewable energy, low-emission slurry spreading, feed additives, regenerative agriculture, and improved herd and nutrient management. According to Enda Buckley, director of sustainability for Carbery, Farm Zero C, demonstrates that cutting emissions and maintaining profitability "can go hand-in-hand". Buckley also believes that Carbery 's FutureProof sustainability bonus - where farmers are paid a premium to "implement certain sustainability initiatives" "on their farms - also provides firsthand proof of what works. He said the new trial will give the group the opportunity "to bring these practical solutions to more farmers, faster.' According to Carbery, the project with Climate KIC will prioritise 'ready now' innovations, to reduce methane emissions rapidly "while retaining profitability". These technologies will be selected by Carbery and participating farmers and will include the Galway-based, Glasport's Bio's Slurry Abate system which "reduces methane, hydrogen sulphide, ammonia and other gaseous emissions". The first year of the new Carbery, Climate KIC project will focus on trialling technologies, "building collaboration with the first 10 farmers", collecting baseline data, and developing viable financial and narrative models. In year two, the project will be scaled, and a second farmer cohort added. According to John O'Donoghue, who is participating in the new trial, farmers have already seen "what works on one farm, as part of Farm Zero C". "This project is about taking what has been tested on one farm, and bringing it to more of them. "We will see then what works practically and what will actually make a difference to the average farmer," he added. Separately, Carbery's Farm Zero C and Climate KIC's Deep Demonstration programmes are also looking at funding models and financial supports to make methane-reduction technologies more affordable for farmers.
Irish Examiner
09-07-2025
- Irish Examiner
Cork dairy giant Carbery invests €700k in new research trial on farms
A fund of €700,000 has been secured to trial methane-reducing technologies on 10 additional dairy farms in West Cork as part of ingredients and food giant Carbery's Farm Zero C research project. The Farm Zero C initiative aims to create a blueprint for an economically viable, sustainable, and carbon neutral dairy farming model. Carbery is partnering with Climate KIC, a leading European climate innovation agency, to trial the new technologies on farms. The technologies will include a treatment for improving manure management and satellite technology to map biodiversity, and expanding the research underway as part of Farm Zero C. 'We've seen first-hand through Farm Zero C and through the outcomes of our FutureProof sustainability bonus (where farmers are paid a premium to implement certain sustainability initiatives on their farms), that cutting emissions and maintaining profitability can go hand in hand,' said Carbery director of sustainability Enda Buckley. 'This project gives us the opportunity to bring these practical solutions to more farmers, faster.' Methane from enteric fermentation and manure management accounts for over two-thirds of Ireland's agricultural emissions, and almost 20% of the country's overall greenhouse gas emissions. The initiative will prioritise 'ready now' innovations, to reduce methane emissions rapidly while retaining profitability. These technologies include Glasport Bio's Slurry Abate system. The wider Farm Zero C project is also looking at funding models and financial supports to make methane reduction technologies more affordable for farmers. Finance innovator and not-for profit Bankers without Boundaries will assist in exploring financial mechanisms like carbon payments, green loans, and cooperative incentive schemes. The first year of the programme announced this week will focus on trialling technologies, building collaboration with the 10 farmers, collecting baseline data, and developing viable financial and narrative models. In year two, these insights will be scaled, and a second farmer cohort onboarded. 'We have been seeing what works on one farm, as part of Farm Zero C. This project is about taking what has been tested on one farm and bringing it to more of them. We will see then what works practically and what will actually make a difference to the average farmer," said John O'Donoghue, one of the farmers who will be participating in this trial.
Irish Examiner
23-05-2025
- Irish Examiner
April milk prices confirmed by co-ops
The milk price for April has been confirmed by Dairygold, Carbery, Tirlán, and Lakeland Dairies. Dairygold has maintained the April quoted milk price at 50cpl, based on standard constituents of 3.3% protein and 3.6% butterfat, inclusive of sustainability and quality payments and VAT. This price equates to an average of 54.6cpl farm gate milk price based on the average solids achieved in April by milk suppliers. The quoted price for April was based on EU Standard constituents of 3.4% protein and 4.2% butterfat, and is 54.5cpl, inclusive of VAT. A spokesperson for Dairygold commented that 'global milk production continues to be relatively steady, but buyers remain cautious amid the threat of tariffs… Butter prices have maintained their strong price levels, although other dairy products have been less robust.' Carbery has maintained its milk price for the month of April. If this is carried across the four West Cork co-ops, Bandon, Barryroe, Drinagh, and Lisavaird, this will result in an average milk price of 52.12cpl, inclusive of VAT, 0.5cpl somatic cell count (SCC) bonus, and the FutureProof sustainability bonus. The base milk price adjustment for SCC and the FutureProof bonus figures are quoted excluding VAT. The total FutureProof bonus available in 2025 is 1.25cpl, an increase of 0.25cpl. Similarly to the Dairygold spokesperson regarding uncertainty of tariffs, Carbery have said "wider uncertainty around the outlook for global markets in the face of potential tariffs is somewhat impacting dairy market performance'. Tirlán will pay a total of 50.08cpl, including VAT, for April milk supplies at 3.6% butterfat and 3.3% protein. The April milk price consists of the base milk price of 49.58 cpl (including VAT), which is unchanged from March, and the sustainability action payment of 0.5 cpl (including VAT) to all qualifying suppliers. Both payments will be adjusted based on the actual constituents of milk delivered by farmers. The actual average price paid by Tirlán for April creamery milk, based on delivered constituents, will be 54.99 cpl (including VAT). Tirlán chairperson, John Murphy, said: 'While dairy markets are relatively stable, there has been a decline in returns for some individual products. We are pleased to be able to maintain farm gate milk price at over 50 cent per litre for the high-volume month of April. "The outcome of trade discussions over the coming period is likely to impact market direction. Consumer reaction to higher prices will also need to be closely watched.' Lakeland Dairies has also left the price of milk unchanged for milk supplied in April. The base price of 48.75cpl for constituents of 3.6% butterfat and 3.3% protein, a retention of last month's price. This price is inclusive of the 0.5cpl sustainability incentive payment. Lakeland Dairies has said that although there are geopolitical tensions and uncertainty surrounding the economic performance of dairy, the supply-demand dynamic remains largely in balance, which is providing market stability.
