Carbery Group 2015 Financial Results

Carbery Group has reported strong results across all divisions for the year ended 31 December 2015 while continuing to pay industry leading milk prices to its suppliers.

Carbery’s earnings before interest, tax, depreciation and amortisation (EBITDA), increased by 33% to €35.3 million, up from €26.5 million in 2014, on an increased turnover of €349.5 million (2014: €316.6 million). Operating profit, before amortisation and exceptional items, increased to €25.5 million in 2015 from €18.3 million in 2014.

An exceptional credit of €6 million reported in the 2015 accounts relates to the sale of Carbery’s 50% stake in the Nutrifont joint venture in Brazil.

Following the removal of milk quota restrictions in 2015 milk supplies from Carbery’s West Cork shareholder suppliers increased by 13% in the 2015 calendar year to 450 million litres. For the full year post quota to the end of March 2016 milk supplies were up 18%. In a year when milk prices were weaker across the dairy sector West Cork suppliers again benefited from Carbery’s industry leading price. The continuing ability to deliver a competitive milk price for shareholder suppliers, whilst also significantly increasing shareholder value, illustrates the successful progress the Group continues to make across its growing international food ingredients and flavour businesses.

Re-investment in the business remains critical to Carbery’s growth plans and during 2015 group capital expenditure amounted to €20 million. Amongst other projects, this includes an investment in an Enterprise Resource Planning (ERP) project for Synergy, Carbery’s international flavour and natural extracts business.

The group’s net debt position at 31 December 2015 was reduced by 20% to €27.8 million (2014: €34.5 million).

The increase in 2015 operating profit is attributable to increased earnings in Carbery’s ingredients division partly offset by lower earnings in Carbery’s dairy division. Earnings growth in the ingredients division is due to year on year earnings growth in Carbery’s nutritional ingredients business as well as strong organic growth in the Synergy division. The lower reported earnings in the dairy business is primarily due to Carbery paying an industry leading milk price to its suppliers in increasingly challenging global dairy markets.