Aurivo achieved a record sales turnover in 2020, despite the Covid-19 pandemic.
The west of Ireland-based co-operative announced its full-year financial results today (Thursday, April 15th, 2021).
The co-op delivered a strong financial performance for 2020 “in what was a uniquely challenging year”.
It recorded an operating profit (before one-off exceptionals) of €8.5 million in 2020 – an increase of 170% on the previous year. It achieved a record sales turnover of €488.7m, an increase of 9.4% on FY19 (2019: €446.8m).
Group EBITDA was €15.1m, an increase of 69.7% on 2019 at €8.9m. On December 31st, 2020, the closing nett debt position was significantly improved at €2.2m (2019: €18.8m).
Progress in 2020 is outlined as follows across Aurivo’s businesses:
Aurivo’s consumer foods business unit recorded a sales turnover of €96.9m – an increase of 1.9% on the previous year.
The co-op’s consumer foods milk brands reported an 8% increase in the retail channel.
As a ‘food-to-go business, My Goodness Limited (trading as For Goodness Shakes), Aurivo’s sports nutrition business was most impacted by Covid-19.
Due to remote working and the notable reduction in footfall across London and the regional cities across the UK and Ireland, sales volumes fell “significantly” in 2020.
Aurivo’s dairy ingredients business achieved a 17% uplift in turnover in 2020 to €198m.
The co-op said it reaped the benefits of the investment with the new dryer in 2020. It produced 25,000 tonnes of various grades of enriched milk powder (EMP) ingredients.
This investment has been a “central enabler”, allowing them to process 35% extra milk per week on the ADI site. 2020 saw the largest powder production volumes ever recorded at the plant.
Aurivo’s agribusiness continued to grow at record rates, recording a sales turnover of €127.9m, an 11.2% increase on 2020.
Changes in consumer behaviours brought about by Covid-19 saw strong customer engagement both in-store and online resulting in 1.65 million transactions in 2020.
Also, feed tonnage delivered a strong performance with an increase in volume of 8%.
Difficulties already faced by the livestock marts business were compounded in 2020 by Covid-19, with enforced closures in April 2020.
Reporting a turnover of €65.9m (2019: €67.5m), the business adapted to the environment to protect customers and employees by moving to online auctions for the first time in its history, in May and June last year.
Milk pool and prices
According to Donal Tierney, chief executive of Aurivo, its milk pool expanded by 5.5% in 2020.
Aurivo paid an average milk price of 35.61cpl compared to 34.35cpl in 2019.
Also, the co-op established a milk stability fund of €3m. Tierney said this will “be paid out in future years to help our milk supply base manage market volatility”.