Kerrygold owner Ornua saw profits jump by more than 10% last year, on the back of a “solid” trading performance for its products globally.
The Irish dairy giant saw operating profit – before bonuses to its member co-operatives amounting to an ‘Ornua Value Payment’ of €72.8m – climb by 11.8% to €130.5m for the 2024 calendar year, according to its annual accounts.
This came despite “volatile conditions driven by the impact of cost inflation and a pressurised milk supply”, Ornua said, with Kerrygold’s “robust” performance “driven by strategic growth, investment in innovative new products, and highly impactful brand activations across multiple territories”.
Group EBITDA, pre the value payment, also rose significantly – jumping by 10.5% to €165.5m, as Kerrygold “strengthened its position as Ireland’s most successful food brand”, with approximately 12 million retail packs of its butter and cheese sold globally every week.
Turnover was largely flat, the accounts showed, falling by 0.2% to just under €3.4bn – slightly down on the previous accounting period’s historic high.
In the US, Kerrygold continued to experience volume sales growth, “further strengthening its position as the number two branded butter in the world’s largest consumer market”, Ornua said.
It reached a record number of US households in the year, supported by the introduction of a new 1lb butter block, representing a category first in the market.
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Kerrygold Park, the global home of Kerrygold butter production in County Cork, also had a record year in terms of output following its first full operational year after the completion of a major expansion project in 2023. In the UK, Kerrygold ended 2024 as the number two block butter brand and the fastest-growing brand in the category.
European retail sales also remained healthy despite inflation, with cheese outperforming butter and own-label products gaining traction.
However, Ornua warned of “global trade tensions” remaining among “the key potential shock factors in the months ahead”.
Irish exports to the US are now subject to 10% tariffs in the wake of US president Donald Trump’s shake-up of global trade earlier this month, with the potential for them to increase back to the original 20% levied on EU imports once Trump’s 90-day pause comes to an end.
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“Our teams around the globe responded well to difficult market conditions to deliver for our member co-operatives, our customer partners, and the consumers that enjoy our products,” said CEO Conor Galvin.
“Following a complex year, we are now entering a period of much uncertainty driven by ongoing global trade tensions,” he added.
“The exact impact of these challenges remains to be seen. However, we are confident in the strength of Irish dairy, which is a unique and sought-after proposition on the world stage.”
Ornua had premium brands and food ingredients that were enjoyed globally, thanks to the qualities of the Irish grass-based dairy farming system, Galvin stressed.
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