Co-op reports €2.7m profits

HIGHER turnover pushed Tipperary’s Arrabawn Co-op into profit last year.

The annual report for the Nenagh-based co-op shows an operating profit of €238,389 compared a to a €2 million loss in 2005. When exceptional items are taking into account, the society made a pre-tax profit of €2.7m for 2005.

Turnover for the year was nearly €10.5m higher at €132.4m, with most of the growth coming from its trading division with turnover here up from €37m in 2005 to €46.5m.

The co-op’s dairy division saw turnover rise to almost €86m from €84.7m. Arrabawn chairman Pat McLoughlin said it was an unusual year for the diary side of business with lower product prices in the early months of 2006 offset by higher prices the last few months.

“The liquid milk operation in Kilconnell has run well in 2006, sales are being maintained in a difficult market where there is strong competition from cheap imported milk,” Mr McLoughlin said.

He added that the co-op’s stores business had a “good” volume increase in hardware, feed and fertiliser sales.

“The store in Borrisokane has proved to be a major success. Planned development of our stores was put on hold in 2006 due to the purchase of Greenvale and we look forward to developing this side of the business.”

Arrabawn acquired the Greenvale business last September and said the purchase allowed it entry to the “growth sector of horse feed”.

According to the Arrabawn annual report, it discontinued two defined benefit pension schemes and transferred the assets to an defined consortium schemes. This released €1.1m to the company’s profit and loss account. The co-op said it continued to operate two defined benefit pension schemes. This had a deficit of €262,000 at year end.

The number of people employed by the co-op at year end fell nine to 192, which cut overall staff cost from €9.7m to €9.5m.