Latest news with #CarberyGroup
Irish Examiner
28-04-2025
- Business
- Irish Examiner
Carbery chief: We're not Kerry in terms of just sheer size and scale and there are pros and cons to that
You'd think there might be some tension for a Kerry man in the heart of West Cork in the days not long after a meeting of Munster's great GAA rivals. Not so in Ballineen, where Kingdom native Jason Hawkins leads boardroom affairs, as chief executive of Carbery Group. 'This time of year around here, we keep the Kerry jersey hidden a little bit,' jokes Mr Hawkins. 'The boards and the farmers of West Cork have been very welcome to this Kerry man.' In the boardroom, it's certainly no time to grumble at Carbery, the cheese, dairy, flavours, and ingredients group headquartered in Ballineen and with operations in the UK, US, Italy, Brazil, Singapore, Thailand, and Indonesia. The group has just released its 2024 annual returns, reporting turnover up 8% to €668m, while operating profits jumped 20% to €24.8m. 'We're in a good position and had a really good year, but in West Cork we don't get carried away with it,' said Mr Hawkins. Group earnings before interest, tax, depreciation, amortisation is up 12%, from €46.4m to €52m. Group operating profit before interest, tax, amortisation of goodwill and other intangibles and exceptional items increased 20% to €30.5m from €25.5m. Net debt decreased to €39.5m from €60.4m in 2023. 'We beat our own expectations in many ways,' said Mr Hawkins. 'Last year was very strong right across all of the business. "Profits are very strong [up 20%], that's after we put €8.6m aside as well for our stability fund, which is a rainy day fund for farmers. "So, on a true trading basis, if you add back that €8.6m, it was an incredibly successful year. "But it's less about the reported number and more we've got the balance sheet and the core business in a really good spot.' Carbery Group chief financial officer Liam Hughes, chairperson Vincent O'Donovan, and chief executive Jason Hawkins at the Carbery Plant in Ballineen. Picture: Andy Gibson. Globally, Carbery enjoyed significant growth in the whey protein market catering to various segments, including infant formula, sports nutrition, and clinical nutrition. The taste business in the Americas had a strong year with significant volume growth in both the US and Brazil in particular. And the Japanese mozzarella cheese market has also proved a positive. Carbery had been very reliant on the UK market for its cheddar production, which prompted the increased investment in mozzarella and diversification in markets in South-East Asia. 'The Japanese customer base is very discerning but willing to pay for quality and good consistent products,' said Mr Hawkins. 'The cheese they want has to stretch a certain bit. It has to look a certain way. Japan historically would have been heavily supplied from Australia and New Zealand, but New Zealand in particular has had a very China-first strategy so the Japanese were looking for alternative suppliers. "New Zealand is a grass-based system, like ours, and grass-based mozzarella produced looks a bit more yellow than in mainland Europe which uses milk from an indoor system which is feed-based, which looks more white. So we fitted the bill perfectly.' Total cheese production at the Ballineen plant in 2024 was 61,000 tonnes, 47,000 tonnes of cheddar and 14,000 tonnes of mozzarella, serving markets in Ireland and around the world, from premium offerings like Dubliner cheese to store own-brand products. Back in West Cork, Carbery processed 574m litres of milk into cheese, nutrition ingredients, and bioethanol in 2024. Owned by the four West Cork Co-Ops — Barryroe, Bandon, Lisavaird, and Drinagh — Carbery continues pay a higher quoted milk price to its suppliers than any other Irish cooperative. 'If we pay an extra cent per litre, that's €5,000 extra into those average farmer families. That's all profit on top of the base price that others will be paying and that makes a huge difference to those farmers,' said Mr Hawkins. But if Irish agriculture has learned anything over the past half century, it's that there are no certainties. The 2024 results from Carbery have been extremely positive, but like all others in the Irish dairy sector, they must await a decision at the end of the year on Ireland's nitrates derogation, which allows farmers to operate at higher stocking rates. The nitrates reduction was reduced for many Irish farmers in 2023. Owned by the four West Cork Co-Ops — Barryroe, Bandon, Lisavaird, and Drinagh — Carbery continues pay a higher quoted milk price to its suppliers than any other Irish cooperative. While hopes are very high the derogation will continue, an expansion of the 220kg/nitrogen per hectare zone has already been mooted for some areas in the 250kg/n areas, which could mean affected farmers having to reduce their stock to comply. That's before any wider decision from the European Commission. Mr Hawkins admits derogation remains a 'huge challenge'. 'It's something we put a lot of time and discussion into. Approximately 65% of our farmers are in derogation. So if you were to lose derogation then that would obviously have fairly drastic implications. "The business can always adjust but for farmers and farmer families, this can be existential. People or businesses or farmers can always respond if you know the rules of the game, but the uncertainty is a terrible place to be in. "It's like asking somebody 'can you build an extension on your house and I'll tell you in three years, whether or not we're going to get planning permission'. It is a leap of faith. 'We strongly believe there is a very strong business and farming model in Ireland that works from a sustainability perspective and an economic perspective. "But at the end of the day, the decision gets made in Europe at the end of the year, so that uncertainty is hard.' Mr Hawkins previously worked at Dairy Farmers of America, the world's largest dairy cooperative, and for the Kerry group, two global food supergiants. Kerry is now a huge public company. Could a public offering ever be on the cards across the border in West Cork? 'We're not Kerry in terms of just sheer size and scale and there are pros and cons to that. We have a great business model here," said Mr Hawkins. Carbery will be here in 20 years and it's not going anywhere. "We are in many ways a mini-Kerry but I think the ownership structure and the capital structure we have in place works today. 'I don't see any huge desire from our shareholders to change. For us, it's always about returning value to shareholders. 'We're owned by the four co-ops but there's a very strong cohesion when we sit around the board table, they come together and it's very much a West Cork mentality. "There's no competition, there's very little politics around this. Local issues or co-op specific issues don't come inside the door here. "When they come here it's all about having the Carbery hat on.' Read More
Agriland
24-04-2025
- Business
- Agriland
‘All things came together' for Carbery Group in 2024
The chief executive officer (CEO) of Carbery Group, Jason Hawkins, has described 2024 has a year in which 'all things came together' for the business, following the release of its annual results. Carbery recorded what it called a 'strong financial performance' for 2024, with operating profit up approximately 20%, in yesterday's (Wednesday, April 23) announcement. 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. Speaking to Agriland after the announcement, Hawkins said: 'It really is a year where probably all things came together in terms of all parts of the business performing well. 'Dairy markets improved in 2024 from 2023 so that helped on the revenue line, and obviously supported milk prices,' he said. Hawkins added: 'On the other side of the house, from a nutrition perspective, we're very focused on whey protein, both from a pricing perspective as well as a demand perspective. The protein demand is very strong so the whey, the nutrition side of the business, performed well. 'Across our taste platform, which has operations in the US, in Brazil, in Asia, and in Europe, all of those businesses performed well. 'The balance sheet is in a very healthy position, and also the fact that the board decided to allocate €8.6 million into the Stability Fund, really allows us from all those angles, particularly in times like we're living in – there's a lot of uncertainty and a lot of challenges potentially out there – we're well situated to handle a lot of issues that might come at us,' the Carbery CEO commented. He said that the Carbery business leadership is 'not arrogant, we're not getting ahead of ourselves, but certainly we're starting in a good position right now'. Carbery's milk pool is based in west Co. Cork, one of the areas of the country where there is a considerable focus on water quality and the nitrates derogation. 'On the derogation side, about 65% of our farmers are in derogation, so it is an issue for us here, and from a business perspective, probably more importantly from a farmer shareholder perspective, a lot of progress has been made,' Hawkins said. 'Going back to the launch of ASSAP (Agricultural Sustainability Support and Advisory Programme) and other programmes…every one of our suppliers now has gone through the water assessment with the advisors,' he added. 'We're now taking actions and I think you are starting to see that come through on the most recent EPA (Environmental Protection Agency) report as well. 'Both in Carbery and the industry, we've been at it for years, but I think we really upped our game in 2024. You're starting to see those actions pay off now. And I think you'll continue to see them pay off in 2025 and beyond.' Although Dairy Industry Ireland (DII) said this week that milk supply across the the sector during this peak season is set to be very considerable, Hawkins does not envisage that the level of milk production will cause any capacity challenges for Carbery. 'I would say we're trending towards maybe slightly behind 2021 levels – now it's week-to-week. It's very strong at the moment. Obviously we didn't have any capacity issues in 2021, so no, I think we're confident that we can handle the milk that's going to come at us in 2025,' he said. On milk price, the Carbery CEO expressed confidence, despite the business reducing its price to suppliers for the first time in 2025 last week, for March milk supplies. 'I think markets have been fairly stable, at a decent enough level if you look at things like the Ornua PPI (Purchase Price Index) and you look at future markets and so on,' Hawkins said. 'Obviously there's been a small gap, we adjusted our own price recently. There's a small gap that does exist between where we're paying and where the market returns are, but I think that's small in the grand scheme of things,' he added. According to Hawkins, the 'outlook would be, at the moment, that milk price in 2025 will be an improvement on 2024'.
RTÉ News
23-04-2025
- Business
- RTÉ News
Revenues and profits increase at Cork's Carbery Group
Carbery Group, the West Cork based ingredients, flavours, and cheese producer, has reported higher revenues and operating profits for the year to the end of December. Revenues for the year rose by 8% to €668m, while the group's operating profit jumped by 20% to €24.8m. Group EBITDA (earnings before interest, tax, depreciation (net of grants), amortisation of goodwill and other intangibles and exceptional items) increased by 12% to €52m, the group added. Carbery said its "strong" 2024 performance enabled the business to set aside €8.6m in the Stability Fund to support milk prices if needed in the future. It said it maintained its commitment to its farmer shareholders by paying a leading milk price in 2024 and its second highest average milk price on record. As part of its FutureProof sustainability bonus scheme, €4.7m was paid to farmers in 2024, with €12.2m paid out since the scheme started in 2022. 93% of the milk pool is coming from suppliers who are participating in the scheme. Phase 2 of the initiative was launched in January this year, which increased the bonus available to a 1.25c/l on milk supplied, a 25% increase on 2024. These new measures will make a further €7.2m available in 2025, Carbery said. Breaking down its divisions, Carbery said that after the challenging opening to the year due to bad weather conditions, milk supply recovered and its farmer shareholders produced an "impressive" 574 million litres of milk in 2024 in its dairy division. "The flexibility in producing both mozzarella and cheddar has become crucial in managing Carbery's cheese business and maximising returns in the market," it said. Carbery said its Taste division saw record performance in all regions as the group continued to consolidate its position with existing customers and further accelerate the business in selected growth categories. Its investment in Asia also continues to deliver, with the growing office in Singapore driving demand and growth across target segments with both existing customers and new business. Meanwhile, the global whey protein market continued to experience significant growth last year and Carbery said its Nutrition business is well positioned to capitalise on this growth. It has a wide range of products under the Optipep and Isolac brands, which cater to various segments, including infant formula, sports nutrition and clinical nutrition. Carbery said its nutritional ingredients are distributed to global customers in over 30 geographical markets. Jason Hawkins, CEO of Carbery Group, said that 2024 was a year of strong, balanced performance across every part of the 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," he said. "That performance enabled us to deliver value for our farmer shareholders and to invest in growth opportunities across the business," he stated. He said that reducing the group's carbon emissions for Scope 1, 2 and 3 remains a key priority. The company reported a continuing reduction in its emissions as it looks at avenues to achieve further reductions in the years ahead, in line with its commitment to Science Based Targets. "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. We are delighted to support this work through our FutureProof bonus, under which we have paid out €12.2m since it started in 2022," the CEO said. "We are also proud that we maintained our position as leaders in milk price and that our strong business performance has allowed us to set money aside for our Stability Fund. Our performance is very much a team effort, and credit is due to all our people globally who have worked to generate the successful performance we are reporting this year," he added.
Agriland
23-04-2025
- Business
- Agriland
Carbery operating profit up 20% after ‘strong financial performance'
Milk processor and dairy business Carbery Group has recorded what it calls a 'strong financial performance' for 2024, with operating profit up approximately 20%. 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.
Irish Times
23-04-2025
- Business
- Irish Times
Carbery Group reports 32% jump in profit thanks to improved dairy market
Pretax profit rose almost 32 per cent to €21 million at dairy group Carbery last year as improved dairy market conditions bolstered the group's performance. Revenue at the Cork-based producer of Dubliner Cheese and Carbery Cracker cheddar, rebounded to €668 million in 2024 following a significant contraction in the dairy market in 2023 in which revenue for Carbery Group had dropped by nearly €85 million to €616.1 million. After challenging climatic conditions at the start of 2024, the dairy group's chairman warned that 'milder, but longer and wetter winters and springs may be the norm', noting that the company would have to factor these changes in climate into its future planning. The Ballineen-headquartered dairy and ingredients group said operating profit before interest, tax and other items rose by 20 per cent to €30.5 million, though still shy of the company's performance in 2021 and 2022. READ MORE Carbery group earnings before interest, taxes, depreciation and amortisation (Ebitda) rose by 12 per cent to €52 million, from €46.4 million in 2023. Cumulative capital expenditure reached €155.1 million last year with the company allocating €8.6 million to its stability fund, which is designed to protect against future volatility in the dairy industry. Chief executive Jason Hawkins said the group's 'commitment to progress' on its sustainability targets was of the 'highest importance' last year. 'We made progress on the emissions front, with a decrease of 3.09 per cent in our Scope 1 and 2 emissions from 2023,' he said, referring to measures of direct and indirect emissions as defined in the Greenhouse Gas Protocol. Mr Hawkins also said there had been a reduction in carbon emissions of 1.56 per cent among the group's farmers. 'They deserve the highest praise here for continuing to prioritise sustainable actions on their farms, while balancing weather challenges, input costs, quality standards and regulation,' he said. Vincent O'Donovan, who took over as Carbery chairman in June, acknowledged the 'immense effort' the group's farmer shareholders made during the year. A total of €12.2 million has been paid to farmers under the FutureProof sustainability bonus scheme since 2022. 'The start of the year was a difficult one for farmers, with an extreme and prolonged period of wet weather extending well into April, leaving many farmers unable to put cows out or grow significant grass,' he said, noting that the group's board increased the milk payout in March by five cents a litre to offset the additional costs borne by their farmers. Carbery Group said it paid its second highest average milk price on record to its farmers. Those bad weather at the start of the year saw overall milk supply fall 2 per cent over the 12-month period. Cheese production reached 61,000 metric tonnes, 14,000 of which was mozzarella with the remaining 47,000 tonnes being cheddar and Dubliner. The group said mozzarella sales 'exceeded our expectations' last year as a result of an increased level of demand in Irish retail.
