Profits at Munster processor Dairygold jump 55% to €37.1m

Turnover at Munster-based co-operative was €1.4bn in 2024

Wed, 09 Apr, 2025 - 14:36

Martin Claffey

Operating profits at Munster-based dairy processor Dairygold increased 55% to €37.1m in 2024, the cooperative announced on Tuesday.

Turnover at Dairygold Co-Operative Society was €1.4bn in 2024, up €10.6m on 2023, reflecting increased dairy market returns. Dairy performance was also boosted by higher milk prices, and lower energy costs but milk production was down 2.1%, with 1.38bn litres of milk collected and processed from farmers.

“Strong performances across all our businesses, despite the challenges experienced in the early part of the year, helped Dairygold deliver a positive financial result for 2024," said chief executive Michael Harte. "The outcome further strengthens the Society’s balance sheet and gives us the flexibility to continue to invest in higher margin activities."

The Munster based dairy processor delivered earnings before interest, taxes, depreciation, and amortization (EBITDA) of €65.4m, up €10.4m (18.9%) on 2023, with improved financial performances being achieved by all businesses. Feed and fertiliser prices were lower but feed demand was high and overall sales of feed and fertiliser were ahead of 2023, by 14% and 18% respectively. Grain growers delivered over 100,000 tonnes of grain and beans.

Dairygold's Co-Op stores retail business exceeded €100m in revenue in 2024. Year-end net bank debt was €157.3m, up €12.8m (8.9%) on 2023. This was after investment in capital expenditure of €48.9m and making the final payment of €13.1m (or €7m net of the sale of financial assets) for 59% of the share capital of Vita Actives Limited. Dairygold acquired Dublin-based Irish nutritional solutions provider Vita Actives in 2023, and the business relocated to a larger premises in Tallaght during 2024. Dairygold said Vita Actives had delivered on its financial objectives in its first full year as a subsidiary of Dairygold.

In March 2025, the board of Dairygold approved the implementation of a Business Optimisation Programme, which in conjunction with 2025 budget initiatives is targeting €14m in cost savings over a three-year period from 2025 to 2027."Looking forward, our near-term business focus will be on optimising business efficiency, maximising the commercial return and leveraging the growing global health and nutrition sector. Our dairy processing facilities are some of the best in the world and will benefit the business and our milk suppliers well into the future," said Mr Harte.

Meanwhile, a Dairygold spokesperson told the Irish Examiner that tariffs imposed by the Trump administration on the EU were "disappointing and a concern for all Irish businesses exporting to the US".

"Dairygold does not supply a large volume of finished product into the US market, but we do supply Ornua with a substantial volume of cream for the manufacture of Kerrygold butter, a popular brand in the US market. We also supply a large quantity of milk into cheese brands exported to the US market and in that regard, the tariffs are a real concern for Dairygold," the spokesperson told the Irish Examiner.

"The important thing now is to ensure that our response focusses on mitigation instead of augmentation. The tariff has not been applied on a country-by-country basis but rather across the EU which means that the EU response will have the weight of the massive EU trading block behind it. We will work to ensure that the Irish dairy perspective is taken account of in the European response, which I hope will be a measured and focused on further negotiation.

"The Irish dairy industry is resilient having faced many similar challenges in the recent past including the threat of Brexit and the imposition of similar US tariffs back in 2019. I’m confident that we will manage this issue."

Meanwhile cross-border dairy co-operative Lakeland Dairies reported revenues of €1.75bn from €1.6bn in 2024, buoyed by an increase in value-add sales as well as an increase in dairy market pricing, particularly for butter, in the second half of the year. EBITDA for 2024 was €73.3m, compared to €43.4m in 2023. Net profit before tax was €21.3m compared to a 2023 loss of €9.75m.