Co-op Aurivo has reported an increase in revenues and operating profits for 2020 despite the Covid-19 crisis
The Sligo-based co-operative posted a record sales turnover of €488.7m, an increase of 9.4% on 2019.
Its operating profit – before one-off exceptionals – soared by 170% to €8.5m while its group EBITDA came to €15.1m, an increase of 69.7% on 2019. The co-op group also said its net debt reduced to €2.2m from €18.8m. Its consumer foods turnover was just under €97 million for the year, a rise of 1.9% The decline in food service was offset by the surging demand in the retail sector, they stated.
Aurivo said its milk pool expanded by 5.5% last year and despite initial concerns about the impact of Covid-19 and a noticeable fall in activity in the food service sector, overall demand for dairy held up well in 2020. The Aurivo average milk price for the year was 35.61cpl compared to 34.35cpl in 2019. It also set up a milk stability fund of €3m which will be paid out in future years to help the co-op’s milk supply base manage market volatility.
Dairy ingredients saw turnover rise 17% to €198 million, with the division reaping the benefits of an investment in a new spray dryer in 2019. The new dryer produced 25,000 tonnes of various grades of enriched milk powder ingredients, contributing to the ability to process 35% extra milk per week.
The turnover from marts was slightly down, due to enforced closures during the pandemic, but the co-op moved to online auctions for the first time in its history.
Aurivo is one of the country’s biggest co-operatives, with businesses in consumer foods, dairy ingredients, retail stores, animal feeds, and livestock trading.
“Aurivo has reported a strong and resilient set of results for 2020, in what was a uniquely challenging year. Against the backdrop of a global crisis, the hard work and agility of our employees, suppliers and members enabled the Co-op to maintain essential supplies, services, and food products across domestic and global markets,” said Donal Tierney, chief executive of Aurivo.