Carbery operating profit up 20% after ‘strong financial performance'
Group turnover also increased for the year ended December 31, Carbery said.
Revenue increased by 8% to €668 million, while group EBITDA (earnings before interest, tax, depreciation, and amortisation) increased by 12% to €52 million.
Carbery reported an operating profit of €24.8 million, an increase of €5.2 million, or 20%, from 2023.
The group said that its performance allowed it to set aside €8.6 million for its Stability Fund 'to support milk price if needed in the future'.
Carbery paid its second-highest annual average milk price on record in 2024. Also, €4.7 million was paid to farmers for sustainability actions undertaken in 2024 under the FutureProof sustainability bonus, bringing the total paid out under that bonus to €12.2 million since it started in 2022.
93% of Carbery's milk pool is coming from suppliers who participate in the FutureProof programme.
Carbery said that, after a challenging opening to the year due to bad weather conditions, milk supply recovered, with its suppliers producing 574 million litres of milk in 2024.
The business noted that flexibility in producing both mozzarella and cheddar 'has become crucial' in managing Carbery's cheese business and 'maximising returns'.
Carbery said its taste division went 'from strength to strength' due to a focus on business development and increased consumer demand.
Record performance in the division was seen in all regions as the group consolidated its position with existing customers and accelerated the business in certain growth categories, the group said.
Investment in Asia 'continues to deliver', with a growing office in Singapore 'driving demand and growth across target segments'.
In the nutrition division, Carbery said that the global whey protein market continued to experience growth in 2024, and that the business 'is well positioned to capitalise on this growth with an extensive range of products…catering to various segments, including infant formula, sports nutrition, and clinical nutrition'.
On sustainability, Carbery said it reduced its 'scope 1' emission (direct business emissions) and 'scope 2' emissions (emissions from the purchase of electricity and other business inputs) by a combined 3.09%, while on-farm emissions among suppliers fell by 1.56%.
Commenting on the 2024 results, Carbery chief executive officer (CEO) Jason Hawkins said: '2024 was a year of strong, balanced performance across every part of our business. I am pleased to report revenue growth driven by positive dairy markets but also very strong organic growth and performance across our global business.
'Every division – nutrition, taste, and dairy – delivered growth, showing the strength of our diversified model. That performance enabled us to deliver value for our farmer shareholders and to invest in growth opportunities across the business.'
'We are proud to report a continuing reduction in our emissions as we look at avenues to achieve further reductions in the years ahead, in line with our commitment to science-based targets,' Hawkins said.
'Our farmer shareholders also recorded a reduction in their emissions, and need to be commended for continuing to prioritise sustainable actions on their farms, while balancing challenges such as weather and input costs,' he added.
On the outlook for 2025, the Carbery CEO said: 'I am pleased with our healthy financial position and believe we can build on this performance, putting us in a strong position to capitalise on growth opportunities. Any investment across our business is supported by a strong balance sheet.
'That said, we must balance this activity with the challenges that may emerge in the global economy and manage the uncertainty in the outlook for global markets. We will always make decisions based on the long-term success and viability of the company. Even with current challenges, we are well positioned to achieve long-term success,' Hawkins commented.
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