Ornua records robust performance despite Covid-19, with operating profit up 69%
27 April 2021
Dairy company Ornua’s operating and financial results for the 12 months ending 26 December 2020, show group turnover reached €2.3 billion. Group EBITDA* grew by 49.6% to €107.4 million, driving a robust 69.2% increase in operating profit* to €83.1 million. This performance was achieved against the backdrop of a complex trading environment dominated by Covid-19, market volatility, and the macro-economic challenges of Brexit and punitive US tariffs.,
Ornua exports to over 110 countries and owns the €1 billion Kerrygold brand which experienced 13% volume growth in 2020, selling over 10 million packets of butter and cheese a week.
Commenting on the robust performance delivered in 2020,John Jordan, CEO Ornua said: “The strong fundamentals of our business – great people and great products – came to the fore allowing us to maximise the opportunity presented with the change in consumer behaviour, doubling down on driving profitable value growth against the backdrop of the global pandemic. This performance delivers on our commitment to maximise returns to our member co-operatives and the 14,000 farmers who supply them.
“Ornua’s 60 years of experience navigating global trade stood to us in 2020, as did our balanced product portfolio, geographical spread across 110 markets, and strong financial foundations,” Jordan added. “Our branded and own-label portfolio benefitted from the change in consumer behaviour which saw Kerrygold volumes grow by 13%, which coupled with our Ingredient’s business delivering positive year-on-year growth, enabled us to pay €68.7million to our Member co-ops through the Ornua Value Payment.”
Looking ahead, Jordan added that the group is “cautiously optimistic about the gradual re-opening of economies as the global vaccine rollout gathers pace; we have clarity on Brexit, and we welcome strong signals from the US on improved US/EU trade relations. This, coupled with Ornua’s clear and ambitious new 5-year strategy focussed on driving profitable growth in priority global markets, will ensure we continue to deliver value for the 14,000 Irish farming families we represent.”
AT A GLANCE: 2020 Operational Highlights
- Over €1 billion (366,000MT) in purchases of premium Irish dairy products providing a critical global route to market for Ireland’s milk suppliers during a period of unprecedented challenges.
- Ornua delivered a 54% year-on-year increase in the brand premium and bonuses paid to co-op members with a record €68.7m Ornua Value Payment.
- Kerrygold sales volume up 13%, with 10 million packets of butter and cheese sold each week.
- Robust response to Covid-19 keeping Ornua’s people safe and ensuring continuity of supply to key customers facing sudden surges in demand globally.
- New fit-for-purpose governance structure embedded to drive future international growth.
- Launch of Growth for Good 2025, Ornua’s ambitious new five-year growth strategy.
- Expansion of Ornua Ingredients North America facility, unlocking 30% growth capacity.
- 25% decrease in absolute emissions and 38% decrease in carbon intensity per tonne of product since 2016, demonstrating commitment to growing sustainably.