Carbery profit rises by 37%

PRE-TAX profit at the Carbery Group rose by 37% to €5.53 million in 2003 over 2002 but still languishes well below the €8.68m earned by the company in 2001.

In fact the increased profits are still well below pre-tax profits achieved as far back as 1998 when the company made €6.63m on sales of €121.9. Sales in 2003 were up 1.3% on 2002 to €169.4m.

The Carbery Group yesterday issued a press release revealing details of pre-tax profits and turnover for 2003 but did not include a summary of the accounts.

The profits for 2003 would be lower but for the inclusion of exceptional profit of €0.8 million.

The company said in its statement this was: “Due largely to the realisation of part of Carbery’s shareholding in Roaring Water Bay Spirits Company, producers of the Boru range of premium spirits.”

The company said that a lot of effort in 2003 went into trying to minimise “milk price drops” to farmer/suppliers, against a background of a second successive year of very poor cheese returns.

Carbery Group chief executive Dan McSweeney said the company’s ingredient’s division did very well and that cheese prices did show some very slight improvement from the low levels of 2002, but again “underperformed expectations”.

“The marketplace has become incredibly competitive, with cheese buying in the UK now in the hands of a small number of large companies.

“Cheese production of cheddar varieties reduced as the year progressed and this helped restore a better market balance as we approached 2004,” he said.

Mr McSweeney expects the twin issues of EU enlargement from May 1 and mid-term-review cuts on commodities in July to be the main influences on the markets in 2004.

The statement also disclosed that Carbery invested €5 million in a recently concluded Joint Venture whey processing investment in England.

The joint venture partners are AJ & RG Barber Limited, a Somerset-based cheesemaker. The new plant is due to open by January, 2005.