Pre-tax profits at Barryroe Co-op up 40% as sales surpass €100m
Figures released by the co-op this week show that pre-tax profits hit €4,547,686 in 2011, up 38.8% on the co-op’s pretax earnings of €3,275,006 last year. Retained profits at the co-op now stand at €40.688m.
Sales topped the €100m mark for the first time, increasing by 12.7% to hit €100.159m, up from €88.851m a year earlier.
Chairman John O’Brien said he was pleased to report on another successful year for the society.
“Sales revenue reached the €100m mark for the first time in the co-op’s 86-year history. Operating profits also increased, and this was achieved after providing for a cash bonus of €606,000,” he said
Mr O’Brien said Clona Dairy Products had a very difficult year.
“The liquid milk business in Ireland continues to suffer from margin erosion, with the constant price reduction in the own-brand sector and the import of cheap milk from Northern Ireland. Clona has restructured its operations to assist with a return to profitability in 2012,” he added.
Barryroe’s pig processing division Staunton Foods had another good year, according to Mr O’Brien, with increases in both revenue and profits.
“Our gross margin decreased, however, due to increased pig prices being paid to farmers while better product prices were not obtainable from the market.
“During the year, we refurbished our slaughter hall. This allows us achieve improved carcass quality and should help open up new markets in 2012.
“While pig prices improved during the year, this did not compensate farmers fully for the substantial increase in ration prices. This situation has not improved so far in 2012. The requirement on pig producers to expend further capital outlay on loose housing will mean many pig producers will again be under financial pressure in 2012,” he added.
The co-op has just 664 shareholders, down four on the prior period.
Barryroe Co-op is carrying bank and other debt of €14.468m, down from €14.855m a year earlier.
The co-op took a €574,345 writedown on its property investments.
The co-op’s annual report shows that its investment in associated companies comprises a 41.67% interest in the allotted share capital of Clona Dairy Products Society Limited; 16.75% interest in the allotted share capital of investment holding company Carbery Creameries Limited; and a 20% interest in the share capital of investment holding company Shinagh Estates Limited
Barryroe Co-op has a loan to an associated company representing €3,205,047 advanced to Carbery Creameries Limited.
“It is an interest free loan with no fixed repayment term. The loan is subordinated to the rights of the associate’s bankers,” the report states.
The company employed 190 staff last year, up from 179 a year earlier.
