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Carbery Group sees revenue growth of 31% to over €700 million as profits rise 4% to €52.1 million

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Carbery Group sees revenue growth of 31% to over €700 million as profits rise 4% to €52.1 million

Carbery Group sees revenue growth of 31% to over €700 million as profits rise 4% to €52.1 million
May 10
10:10 2023
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Carbery Group, the international ingredients, flavours, and award-winning cheese producer, has reported a positive financial performance for the year ended 31 December 2022. Group turnover increased by 31% to €700.8 million, while on a constant currency basis turnover increased by 27% year-on-year. Group EBITDA (Earnings before interest, tax, depreciation (net of grants), amortisation of goodwill and other intangibles and exceptional items) increased by 4% to €52.1 million (2021: €50.1 million).

Headquartered in Ballineen, County Cork, Carbery Group is owned by four Irish co-operatives, Bandon, Barryroe, Drinagh and Lisavaird, and employs almost 1000 people, with 1208 local farmer suppliers. Carbery operates from 12 locations including Ireland, the UK, the USA, Brazil, Italy, Singapore, Indonesia and Thailand and supplies more than 50 countries worldwide.

On a constant currency basis EBITDA decreased by 4%. Group EBITA (Operating Profit before interest, tax, amortisation of goodwill and other intangibles and exceptional items) increased to €32.8 million (2021: €31.2 million) reflecting a year-on-year increase of 5%. On a constant currency basis EBITA decreased by 6%. EBITDA and EBITA figures for 2022 are calculated after €10 million was allocated to the Stability Fund for shareholders and €3 million was paid out to supplier shareholders under the FutureProof sustainability bonus.

CEO Jason Hawkins commented: “We are pleased to be able to report to our shareholders a successful year for Carbery. This is in the form of revenue and business performance, which saw record returns from markets for our products, but balanced with very high input costs for Carbery and for our farmer shareholders. What I judge to be more important is that we managed this situation to build for our future. Introducing Futureproof, our sustainability bonus for our suppliers, supporting shareholders on fixed milk contracts, and setting aside €10 million for our Sustainability Fund to support milk price challenges through 2023. These are forward-looking initiatives designed to ensure a stable future for our shareholders.”

Milk volumes at the Carbery Ballineen plant decreased to 598 million litres (-2% from 2021), all processed in West Cork. 

Carbery Chairman Cormac O’Keeffe said “2022 was a banner year for milk prices, and we were happy to be able to deliver these in line with shareholder expectations. Equally important for myself and the Board was our commitment to preparing for the future. With Futureproof, our sustainability bonus, we are providing tangible financial support from the company to support farmers in adopting more sustainable and efficient practices. We are proud to be supporting our farmers shareholders through a difficult period for farming.

He continued: “There is a lot to be hopeful for within the sector. We know our climate targets, we know what we need to achieve and through Farm Zero C and other projects we are pioneering science-based innovations that will help us to reach these targets.

Sustainability central to growth objectives

Sustainability, central from the beginnings of the company as a dairy co-operative in the 1960s, continues to be the foundation underpinning how Carbery operates. As well as prioritising environmental sustainability, Carbery’s sustainability strategy also covers community, marketplace, supply chain and people. This in recognition of the principle that to be truly sustainable, a company must consider their impact on the planet, but also on the communities and society in which they operate.

The Group is pleased to report further progress towards its sustainability ambitions. Greenhouse gas emissions reduced across all global sites by 5.5%, due to a reduction in energy use and a temporary change in energy source. Water usage across the Group reduced by 8.4%, due to a longstanding and ambitious program of water reduction across the Group. Production GHG intensity is down by 17.7%, despite production increases.  Waste to landfill reduced by 44.7% due to a focus on waste management and a redirection of waste arising from landfill into waste-to-energy.

Carbery’s target is to have net zero emissions across all manufacturing sites by 2035. In tandem with reducing Scope 1 and 2 emissions, they are now making major efforts to reduce Scope 3 emissions across the Group, especially at farm level. To decarbonise manufacturing sites, Carbery will have to source sustainable renewable energy and this is a key priority for the Group.

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