Dairy Ireland is comprised of two businesses. Consumer Products is the leading supplier of branded consumer dairy products to the Irish market and long-life products for export. Agribusiness supplies inputs to the Irish agriculture sector and is the leading purchaser and processor of grain and the leading manufacturer of branded animal feed in Ireland.
Where you will find our products
Our consumer product portfolio extends across a range of dairy products, including standard and fortified milks, cheese, butter and cream, and a range of chilled soups. We also produce long-life liquid milk and cream for export to markets such as China, Europe and the Middle East. Agribusiness has a network of over 50 retail stores focused on the Irish Agri Sector.
Dairy Ireland delivered a good performance in 2015 driven primarily by Consumer Products. Revenues increased 2.7% reflecting a 1.8% increase in volumes and a 0.5% decline in pricing. Bolt on acquisitions in Consumer Products contributed 1.4%. EBITA margins recovered by 140 basis points to 4.5%.
Outlook for 2016
Dairy Ireland performance in 2016 is expected to be broadly in line with 2015. The outlook is dependent on a stable consumer environment and demand for animal feed and fertiliser in Ireland which is impacted by climatic conditions and farm income.
- Consumer Products
Consumer Products is a leading supplier of branded consumer products to the Irish market. Its Avonmore brand is the second highest selling grocery brand in Ireland while other brands include Kilmeaden, the largest block cheddar cheese brand and a range of leading local milk brands including Premier milk.
Its product offering focuses primarily on dairy products and includes standard and fortified milks, along with cheese, butter and cream as well as a range of chilled soups. The commitment to innovation and new product development is exemplified by its fortified range of milks including Super Milk, Slimline, Heart Active, Protein and Lactose-free which have redefined the milk category.
Consumer Products have also opened a new UHT (Ultra-Heat-Treated) facility to produce long-life liquid milk and cream suitable for export to emerging markets such as China, Europe and the Middle East. It manufactures a range of standard and fortified UHT milk and cream products, including export versions of its market leading brand, Avonmore Milk. Consumer Products delivered a good performance in 2015. The investment in operational efficiencies, mix improvement and some reduction in input costs enabled a recovery in margins.
Revenue growth was driven by increases in value added milk and cream sales plus bolt on acquisitions. We will continue to innovate and invest in our brand portfolio both domestically and internationally.