Carbery Group enjoyed a 27.8% surge in pre-tax profits for 2011 up to €8.7m, buoyed by strong US sales for its flagship Dubliner cheese brand and sustained British growth for its Kinetica sports nutrition range.
Annual results for 2011, released yesterday, show the West Cork-based dairy group’s 14.5% rise in revenues to €256.5m was driven by a strong performance from its ingredients division. Its R&D team has new products in the pipeline across the infant nutrition, sports nutrition, and clinical nutrition markets.
In contrast, its cheese division had a challenging year, principally due to market returns for cheese under-performing relative to other dairy products.
Carbery’s suppliersanticipate increasing their milk output by 45% from 2015 to 2020. This will require investment to develop extra production capacity, and a focus on exports growth.
Chief executive Dan MacSweeney said: “Over the next few years, we will address associated challenges such as working capital requirements and developing markets for the extra output.
“While we have a plant in place to process this extra volume at Ballineen in West Cork, we will have to ensure we develop good markets for this extra product, a lot of which will be long-keeping cheese, hence the need to have adequate working capital facilities available.”
Carbery’s ingredients business, which includes its flavour business Synergy as well as its dairy ingredients business, had a strong year.
Synergy continues to grow in existing markets and establish itself in new ones, acquiring two fla-vour businesses in the US.
Acquired in the last quarter of 2011, Sensus in Hamilton, Ohio, specialises in the extraction of natural aromas from compounds such as tea, coffee, and fruits, and serves the food service and beverage markets.
The plan is for Sensus to enhance the range of taste and aroma ingredients that Synergy brings to its customers.
Sethness Greenleaf, which is based in Chicago close to Synergy’s US headquarters, was also acquired in late 2011. It produces flavours for the beverage sector and has strong expertise in emulsion technology.
Mr MacSweeney said: “These are two really important acquisitions for our business. They add scale to the business and bring us new technologies, products and differentiators.”
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