Full Year Financial Results for year ended 31 December 2017
Strong business growth and financial performance
Wednesday 25th April 2018: Aurivo, the globally focused agribusiness headquartered in the north west of Ireland, today announced financial results for the financial year ended 31 December 2017.
For the business of Aurivo, it was a year of strong business development and financial performance in a volatile year, marked by historic butter prices internationally.
Aurivo has reported a Group operating profit (before exceptional items) of €3.90m, an increase of 10% on the outturn for 2016 (2016: €3.57m). Turnover for the year was €426.4m, an increase of 9% on the previous year (2016: €391.0m). The performance illustrates the strength of Aurivo’s underlying business and that of its operational and commercial platforms. Net debt in the period reduced significantly from €16.6m in 2016 to €5.7m in 2017. Aurivo continued its capital programme in 2017, investing a further €4m in the business bringing total investment in the Co-Operative to €28.7m over the past seven years.
- Strong balance sheet that positions Aurivo for future growth
- Delivery of shareholder value in 2017, greatly assisted by the rally in milk prices up to Q3
- 420m litres of milk processed – a record year and an increase of 8% on 2016.
- Commenced five-year GMP investment programme in upgrade to Aurivo’s Dairy Ingredients facility in Ballaghaderreen.
- Third and strongest Fixed Milk Price Scheme launched – reaffirming Aurivo’s commitment to supporting suppliers through strong Co-Op performance.
- Market returns and business performance allowed Aurivo pay a competitive milk price for 2017
- Active year for new product development and innovation across the business.
- Unfavourable weather conditions in latter half of 2017 presented fodder issues for farmers. Aurivo was instrumental in highlighting issue and played a significant role in assisting farmers.
- Very strong year for Consumer Foods business with increased sales across milk, butter and sports nutrition.
- Improved positions and sales for both Agri and Marts business divisions.
- Completion of Engage 2022, a five-year strategic plan that will ensure Aurivo’s continued growth.
Commenting on the financial performance of Aurivo and the outlook for the Co-Operative:
Aaron Forde, Chief Executive of Aurivo said, “2017 was a year of achievement based on meeting the needs and requirements of our members and customers, and a year of carrying out the necessary planning and development work to put in place the foundation blocks to ensure Aurivo’s continued growth and success.
“While milk supply growth continues in 2018, the current year will be one with significant volatility. Brexit is an uncertainty for our business and the wider sector. We continually monitor the situation and continue to put in place plans through our Brexit team to ensure we are as ready as possible for the inevitable fallout from the UK’s exit of the EU. Ultimately, the sector needs the Government to get the best possible deal for Irish food and agribusiness.”
Pat Duffy, Chairman of Aurivo said, “Aside from issues outside of our control, we have a real sense of renewed confidence for 2018 and beyond. This is a truly efficient and effective business that is delivering for all its stakeholders. We have an ambitious plan for the future growth of the business, and the operational plan to deliver that is now well underway.”