Carbery Group reports increase in profits of 6% for 2016

Carbery Group has reported an increase in earnings before interest, taxes, depreciation and amotisation (EBITDA) to €37m on turnover of €340m for 2016.

EBITDA increased by 4.8 per cent, up from €35.3m in 2015. Turnover for the year was down slightly at €340m compared to €349.5m in the previous year.

The Group is reporting operating profit before interest, tax, amortisation and exceptional items (EBITA) of €27.1m (2015: €25.5m), reflecting a year-on-year increase of 6 per cent. On a constant currency basis, EBITA increased by 9 per cent year on year.

Continuing on course with the group’s growth strategy, the Carbery Group invested €15.4m in its dairy and ingredients departments during 2016, increasing the total investment made by the company since 2011 to €78.2m.

By Division

Carbery’s dairy business in Ireland recorded good margins and expansion in both its ingredients and cheese divisions, in spite of lower prices for cheese during the year. The volume of milk processed at Ballineen in 2016 was up 4.4% to 470 million litres.

Carbery’s ingredients division has developed new business in high-value fields such as infant nutrition and clinical nutrition.

Carbery Group’s international flavour and natural extracts division, Synergy, has recorded good growth in its main customer markets of the UK, Europe, the USA, South America and south-east Asia.

Outlook

The outlook for the Carbery Group business is reportedly positive for 2017, given its strong and dynamic dairy, ingredients and flavours business divisions.

 

 

 

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.

Carbery Group 2014 Financial Results

Carbery Group, the leading international manufacturer of value-added ingredients, flavours and cheese, has reported Operating profit before exceptional items of €12.7 million for year ending December 2014. Turnover was €316.6 million. During 2014 Carbery Group maintained its focus on adding value to its operating activities with group capital expenditure of €14.7 million across its dairy, nutrition ingredients and international taste business divisions. Significant investments were made
in Carbery’s cheese processing facilities in Ballineen, Co Cork to facilitate post quota expansion.

Carbery’s nutritional business also had a good year in 2014, benefiting from strong markets and from increased output of specialised ingredients, in particular its hydrolysed protein range. The company is engaged in a number of public/private research initiatives including the Dairy Products Technology Centre and Food for Health Ireland.

Synergy, Carbery Group’s taste and natural extracts business, had another successful performance in 2014. Results were driven by growth and consolidation in the established markets in the EU and US with new markets in South East Asia and South America continuing to be areas of focus for Synergy’s international growth. In its first full year of operation Synergy Thailand has had a very successful year, with Carbery’s operating presence in the region facilitating significant new business wins. Synergy flavours US and EU also benefited from significant investments in new analytical and sensory capabilities to support their innovation drive and deliver a more tailored customer experience.