Ornua, the Irish dairy Co-op that owns the Kerrygold and Pilgrims Choice brands, saw its turnover increase 6.9% to €2.5bn during the year to 26 December 2021 as consumption patterns started to recover from the impact of the pandemic.
Group operating profit was up 1.3% to €153.7m, which the company stated was achieved through a combination of growing its branded product range, expanding its innovation capabilities, and leveraging its customer partnerships and international scale.
Ornua noted that it was a milestone year for its Kerrygold brand, with it achieving 12% volume growth in the year by selling over 11 million packets of butter and cheese globally each week. The company has received approval for a €40m expansion of Kerrygold Park in Mitchelstown, Ireland, which it said will increase the brand’s capability to meet growing global demand.
Meanwhile, the group’s Ingredients division also performed well expanding its product portfolio in Europe and the Middle East. Ornua highlighted that the expansion of its US footprint through the acquisition of Whitehall Specialties unlocks “significant” innovation and manufacturing capabilities and enhances the company’s position as a leading supplier of pizza cheese products globally.
CEO John Jordan noted that the business had faced “persistent challenges” but said Ornua had maintained a “strong, stable, and sustainable performance year-on-year, as we marked our 60th year in business.”
Looking ahead, the company said: “The advantages and fundamentals of the Ornua business were evident in 2021 and will remain key as it grapples with the challenges of 2022 and beyond. The expansion of Kerrygold Park in Mitchelstown, commenced during this year and this facility will play an essential role in enabling the long-term growth of the brand for the benefit of Irish farming families and the wider Irish economy.
“However, there are significant challenges ahead for Ornua and the wider dairy sector. The impact of inflation on raw materials, packaging, fuel, energy, and salaries will put significant competitive pressure on many businesses this year. Geopolitical instability, global trade barriers, supply chain challenges, and market volatility will also continue to have a significant impact and will need to be monitored and managed closely.”
