The Irish Dairy Board (IDB) has reported turnover exceeding €2bn for 2012 on the back of a strong performance by its Consumer Foods business – most notably its Kerrygold butter brand.
The IDB achieved total sales of €2.03bn ($2.66bn) for the year period ended 31 December 2012 – a 2.4% year-on-year increase. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased by 10.8% from €38m in 2011 to €42.1m ($55.1m).
The company’s Consumer Foods division recorded branded sales volume growth of 7% across its core markets – the UK, Germany, and the US. According to the IDB, this was “underpinned by increased investment in marketing and product innovation” and the “international rollout of the reinvigorated Kerrygold” brand.
Kerrygold currently holds a 15.3% share of the German butter market, according to IDB – making it the leading butter brand in the country. While in the US, Kerrygold is the number one imported butter.
"Strong" Cheese and ingredients performance
Meanwhile, the IDB’s Dairy Trading and Ingredients divisions delivered a “strong performance” on the back of Irish and international added-value cheese ingredients and trading operations.
These “strong returns” also reflected the first full year contribution of Thiel Cheese and Ingredients, which the IDB acquired in late 2011, and a half year contribution from UK-based The Cheese Warehouse.
“Businesses acquired were successfully integrated and are performing to plan. The division continues to improve efficiencies through lean manufacturing and develop its value added food solutions capabilities, with a number of innovative dairy ingredients commercialised in the year,” the IDB said.
The company also launched 50 new products and range extension in 2012, including Pilgrim’s Choice Lighter Extra Mature in the UK, Reduced Fat Dubliner in the US, and Kerrygold Bratcreme – a liquid butter and rapeseed oil blend for cooking – in Germany. The IDB plans further investment in new product development in 2013.
"Build sustainable new routes to market"
Looking ahead to 2013, the IDB said it will continue to “build sustainable new routes to market” ahead of the April 2015 European Union (EU) milk quota abolition.
“The Board has made significant investment over the past three years to strengthen the business,” said the company.
“Our business strategy is clearly delivering results across the Group and the outlook is strong for 2013. We will continue to invest in our people, develop new products and build and enhance sustainable new routes to market ensuring IDB’s role in driving the growth potential of the Irish dairy sector. We are ready to take advantage of the opportunities that will exist in a post quota environment in 2015.”