Cork’s Carbery Group sees revenues soar to €701m, but higher costs curb profits

Carbery CEO Jason Hawkins. Photo: Chris Bellew /Fennell Photography

John Mulligan

Carbery Group, the Cork-based international dairy, flavours and nutritionals manufacturer, saw its reported operating profits edge 5pc higher to €32.8m last year as it continued its international expansion.

However, on a constant currency basis they were 6pc lower.

Its revenue soared by 31pc to just under €701m last year. It was 27pc higher on a constant currency basis. Higher input costs curtailed profit growth. On a constant currency basis, earnings before interest, tax, depreciation and amortisation slipped 4pc.

Headquartered in Ballineen, Carbery is owned by four Irish co-operatives: Bandon, Barryroe, Drinagh and Lisavaird. It employs more than 1,000 people and has more than 1,200 local farmer suppliers.

The company, which also owns the Dubliner cheese brand, operates from 12 locations including Ireland, the UK, the USA, Brazil, Italy, Singapore, Indonesia and Thailand and supplies more than 50 countries worldwide.

Chief executive Jason Hawkins said the group had seen “record returns from markets” for its products.

The company also introduced a sustainability bonus for suppliers and supported shareholders on fixed milk contracts. It set aside €10m for its sustainability fund to support milk price challenges this year. Processed milk volumes at the Ballineen site dipped 2pc last year to 598 million litres.

“These are forward-looking initiatives designed to ensure a stable future for our shareholders,” said Mr Hawkins.

Last month, Carbery officially opened its new group Asia innovation and business centre in Singapore. It has had a presence in the region for more than a decade, with an office in Bangkok.

Asia is a key growth area for the group in both dairy and flavours.

The group said that its cheese business performed strongly last year, but that price inflation and rising energy costs needed to be “tightly managed”. It has built a significant customer base for its mozzarella cheese across Europe and Asia, it said.

Its whey-based nutritional business also did well, according to Carbery.

It added that its flavours arm, called Synergy Flavours, performed strongly against a difficult geopolitical background.

“Global disruptions caused by the war in Ukraine, soaring energy prices and the pandemic have brought a new dimension of complexity to manage in terms of supply chain and inflation,” it said.

“Synergy has worked closely with customers to support them during a difficult inflationary environment and uncertain market conditions,” it added.