Ornua targets €3bn in sales

Kerrygold exporter Ornua has just finalised a five-year plan that sets a goal of €3bn for Irish dairy sales.

Turnover stood at a little over €2.3bn for 2014. Recently rebranded from the Irish Dairy Board, Ornua has just reported a 23% rise in its pre-tax profits for 2014 to €28.1m.

Ornua has achieved these figures in a year of volatile global milk prices, and despite significant investments at home and overseas as it develops new outlets for Ireland’s anticipated post-quota surge in milk volumes.

Ireland’s agri-food leaders predict up to 50% increases in new milk volumes by 2020, all of which will go into export markets.

As the main marketing body for 60% of Irish milk production (notable exceptions being Kerry Group and Glanbia), Ornua’s development of new products in tandem with Teagasc, as well as most of the co-ops and other industry partners, will be critical to Ireland’s growing dairy ambitions.

“At our last board meeting, we approved our marketing spend moving from €30m up to €36m,” said Ornua chief executive Kevin Lane. “We now have an ambitious five-year growth plan, and have set a goal to bring our annual sales over the €3bn mark.

“In addition to an excellent financial performance, 2014 was a year in which we significantly increased the capacity of our business through brand growth, innovation and in-market investment. We enter into this new era for Irish dairying in an excellent position, with a strongly performing organisation, geared for growth.”

Ornua’s balance sheets show net assets of €436m, and debts of €99.3m. In 2014, the group also secured new five-year syndicated bank facilities totalling €420m, facilities which will provide Ornua and the Irish dairy industry with funds to meet domestic expansion and international growth requirements.