CARBERY Group has reported a drop in turnover and operating profit for 2023 in what it described as a ‘challenging year.’
Group turnover for the international ingredients, flavours, and award-winning cheese producer was €616.1m, down 12% from 2022. Milk volumes also declined, with 584m litres processed in 2023, compared to 598m in 2022.
‘Our performance this year across our business was steady, which is a testament to the resilient nature of our business model and to the decisions we have made,’ said ceo Jason Hawkins.
‘The strength of our diversified business model and our balance sheet allowed us to pay the second highest milk price in our history to our shareholders while also continuing to invest in the business and deliver on our sustainability ambitions. Carbery is very proud that despite a challenging year, we managed to maintain our position as leaders in milk price. I am really pleased that we have been able to continue to focus on our sustainability journey across our global production facilities, while also making progress on assisting our farmers to reduce their climate footprint. Initiatives like our FutureProof sustainability bonus scheme, and our continuing research into science-based solutions through our Farm Zero C project have been central to this.’
The performance of Carbery’s dairy business was impacted by the volatility of dairy markets driven by subdued consumer spending due to cost-of-living concerns, high dairy supply from 2022, geopolitical tensions and supply chain disruptions.
Group EBITA (operating profit before interest, tax, amortisation of goodwill and other intangibles and exceptional items) decreased to €25.5m (2022: €32.8m) reflecting a year-on-year decrease of 22%.
Carbery Group had a successful year in meeting sustainability targets, recording a reduction of 5.27% in carbon emissions since 2022. Its annual report also highlights a reduction of water use by 1% across the Group since 2022.
On farm, the FutureProof sustainability bonus scheme for 2023 was taken up by 85% of farmers (90% of the group’s milk supply) in its first full year. By embracing new technologies and maximising efficiencies, Carbery Group’s Farm Zero C project has reduced emissions by 27% since 2018. Carbon emissions dropped from 0.66kgCO2/kgFPCM in 2022 to 0.63 in 2023. The carbon footprint of the average Irish farm for 2023 is 0.90 kgCO2/kgFPCM.
‘Our main priority will be to support our farmers through maintaining a leading milk price and supports through a challenging landscape for them. We are always close to our co-operative roots, and so we are focused on making our collective impact a positive one on our communities,’ added Jason.
