Latest news with #StabilityFund
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.
