Carbery Group release annual results for 2023

• Sustainability targets on track – Scope 1 & 2 carbon emissions (from production and supply chain) down 5.27% in 2023, on farm emissions (scope 3) down by 3.51%
• Excellent uptake on our FutureProof scheme to support sustainability actions on farm, with farmers representing 90% of our milk supply undertaking actions.  
• Group revenue of €616.1m (-12% from 2022), EBITA of €25.5m (-22% from 2022) and EBITDA of €46.4m (-11% from 2022).
• Strong growth in Carbery’s Taste Business across all markets
• Nutrition and Cheese businesses delivered good performance in challenging dairy markets
• Delivered a leading milk price, paying the second highest in Carbery’s history.

West Cork, 24 April 2024.

Carbery Group resilient in an unpredictable market, continues investment and progresses sustainability targets

Carbery Group, the West Cork-based international ingredients, flavours, and award-winning cheese producer, has reported a drop in group turnover and operating profit for the year ended 31 December 2023. 

Jason Hawkins, CEO of Carbery Group said:

“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.”

He continued, “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.

Group turnover was €616.1m for 2023, while on a constant currency basis turnover decreased by 11% year-on-year.

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%. Group EBITDA (earnings before interest, tax, depreciation (net of grants), amortisation of goodwill and other intangibles and exceptional items) decreased by 11% to €46.4m (2022: €52.1m).

Carbery Group had a successful year in meeting sustainability targets, recording a reduction of 5.27% in carbon emissions since 2022 The report also highlights a reduction of water use by 1% across the Group since 2022. Carbery Group committed to Science Based Targets, received Origin Green Gold Member status in 2023 and won Sustainable Exporter of the Year and overall Exporter of the Year at the Irish Export Awards.

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 while maintaining output and improving profitability. 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.

Cormac O’Keeffe, Carbery Group Chairman said:

“This year was another successful year in Carbery’s history, despite a challenging year for global markets. The success is down to the business structure we have developed over many years through the strategic decisions with the support of the Carbery Board”.

He continued, “In particular I am immensely proud of our sustainability performance and how our farmers are leading this journey. Our FutureProof scheme, where farmers representing 90% of our milk supply received up to 1cpl for carrying out specific actions to improve sustainability (using protected urea, milk recording four times a year, agreeing to an ASSAP assessment, implementing or improving EBI) Our Farm Zero C projects remains a beacon for the future of farming.

“In my last year as chairman, I am very proud of how we prioritised paying a leading milk price. It’s also been great to see our global footprint expand, and through the ecosystems we have built, I’m positive Carbery Group will enjoy great success in the future.“

Sector Analysis

Dairy

The performance of Carbery’s Dairy business was impacted by the volatility of dairy markets throughout 2023 driven by subdued consumer spending due to cost-of-living concerns, high dairy supply from 2022, geopolitical tensions and supply chain disruptions. Despite external challenges, Carbery Group’s milk volumes remained strong at 584m litres processed in 2023.

Taste

Carbery Group’s Taste division had a very strong performance in 2023, with all regions delivering strong EBITA growth in 2023. In Europe, growth was driven by nutrition and beverage categories and despite some challenges in the US market, that market saw significant year-on-year growth and further enhanced strategic partnerships.

Nutrition

The nutritional ingredients business had a good performance across all target segments of infant formula, sports nutrition, and clinical nutrition and continued pursuit of high value-added opportunities across global markets.

Investing in the future, celebrating heritage.

The opening of the Carbery Group Asia Business and Innovation Centre in Singapore was a significant investment in the region. The Group also celebrated significant anniversaries in 2023 with the Thailand team marking ten years since the opening of their production facility, the UK team celebrating 25 years and the Italian team marking an amazing 140 years in business.  

Looking ahead

Jason Hawkins commented:

“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”.

“At the end of 2023 we completed our new business strategy that focuses on the near-term three-year business plans while also considering the 10 Year business horizon, we’re looking forward to beginning that journey this year.”

“We want to maintain our commitment to sustainability.  We have signed up to Science Based Targets this year, with the aim of reducing our Scope 1 and 2 emissions by 4.2% year on year, and our Scope 3 (mostly farm) emissions by approximately 3% annually. These are ambitious targets, but we come from a strong base which will help us on this journey. “

ENDS

The full report is available to download from https://www.carbery.com/annual-results-2023/#

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