Carbery Group profits rise to €13m

The Cork-based Carbery Group’s pre-tax profits rose by 17% to €13m last year as revenues increased by 12% to a record high of €318.3m.

In his report, group chief executive Dan Mac Sweeney said the increase in revenues was underpinned by the growth in the group’s cheese and ingredients divisions.

Mr Mac Sweeney said the group’s operating profits increased from €12.4m to €16m, and “this performance was recorded after declaring a year-end bonus of 0.5c per litre on all 2013 milk supplied”.

The group’s earnings before interest, tax, depreciation and amortisation increased by 2.3% to €25.9m.

Mr Mac Sweeney said that “overall, Carbery’s Irish business, which principally comprises its diary and nutritional business, performed well in 2013. After a slow start to the year, dairy markets started to deliver better prices as the year progressed.

“Commodity powders and butter fats were particularly buoyant due to the significant demand from China.

“Whilst the group’s net debt position at December 31 declined to €40.3m, free cashflow declined by €2.4m. This was principally due to cash outgoings on group capital expenditure programmes.”

The food ingredients, flavours, and cheese manufacturer, headquartered in Ballineen, Co Cork, is best known locally as the producer of Dubliner cheese.

Carbery Group chairman Donal Tobin said the 0.5c per litre bonus “is a large bonus and is to be welcomed by all”.

Mr Mac Sweeney said the group employs 531 people, with 220 based in Ireland, and 311 abroad. The overseas workers are primarily based in the US, UK, and emerging markets such as Brazil and Thailand.

Mr Mac Sweeney said the group’s international Synergy business “had another strong year in 2013 with the business continuing to grow organically”.

He said that key highlights for the year included the opening of its flagship operational facility in Illinois and the opening of a production and development facility at Bangkok, Thailand.

Staff costs last year increased from €31.6m to €32.92m.

Shareholder funds during the year increased from €110.62m to €118.1m, with the group’s accumulated profits amounting to €39.76m.

Its cash declined during the year from €10.69m to €5.5m.