Ornua’s sales grow by 9%
Kerrygold producer Ornua is confident of delivering strong returns in the face of a challenging dairy market after growing its sales by 9pc last year. the company has reported earnings before exceptional items of €58.8m for last year, an increase of 18% on the previous year’s numbers.
The country’s biggest exporter of dairy products increased its earnings before interest tax depreciation and amortisation (EBITDA) by 18pc to €58.8m.
The improved figures from Ornua came against a challenging backdrop of falling milk prices globally following the abolition of quotas just over a year ago.
Chief executive Kevin Lane said it delivered growth in both new and existing markets in 2015, the first year after the removal of EU milk quotas.
“We are confident that, whilst recognising the challenging market conditions that exist, our business will continue to deliver strong returns and growth thereby enhancing value for the farmers we represent,” Mr Lane said.
The company said that last year was a challenging period across the world’s major dairy-producing regions as a combination of strong supply and demand weakness led to a fall in global prices.
On a worldwide basis, milk supply grew by 5% from January 2014 to December 2015 while demand only rose by 3%. This resulted in the building up of stocks, and as a result prices weakened.
