Arrabawn made profits of nearly €11 million in 2023
Arrabawn Co-op delivered record gross profits in 2023 – up 5.5% from 2022 – according to the latest financial figures released by the business.
Their EBITA (before interest, taxes, depreciation, and amortisation) earnings had a return of €19.1 million for last year – the company credits its ‘record investment’ in the Nenagh processing facility as one of the main factors for the good performance. The strong 2023 performance was also reflected in a record operating profit of €10.77million which was up €1.19m (12.5%) on 2022.
The company balance sheet was also significantly improved, with shareholders’ funds increased by €11.5m - a 51% increase on five years ago.
Net debt, brought about by the investment programme, is now down from a high of €45m in 2019 to €10.3m last year, a decrease of €13.8m on 2022 and now at pre-expansion levels.
The co-op also delivered a strong milk price of 43.77c/l, saying that they supported suppliers in an otherwise challenging year of difficult weather conditions and persistently high input costs.
An exceptional item, not recorded in either EBIDTA or Operating Profit, was the profit of €4.3m from the sale of the liquid business in Kilconnell last year. The company’s Agri Trading Division also continued to grow its customer base across 2023. Arrabawn completed a €3m extension to its Dan O’Connor Feeds mill in Limerick in 2023, while the capital expenditure programme also saw investment in the new entrance at its Nenagh headquarters, including new intake and CIP (Cleaning in Place for trucks) areas as well as water and heat recovery.
Pictured at the launch of the Arrabawn Co-op annual report were: Conor Ryan (Chief Executive Officer); Edward Carr (Chairman) and Micheal O'Kelly (Chief Financial Officer).