Carbery Group, the international producer of ingredients, flavors and award-winning cheeses, has achieved a positive financial performance for the year ended December 31, 2022. The Group’s turnover rose by 31% to €700.8 million, while turnover increased by 27% year-on-year measured on a constant currency basis. The Group’s earnings before interest, taxes, depreciation (net of grants), amortization of goodwill and other intangibles, and exceptional items (EBITDA) increased by 4% to €52.1 million compared to €50.1 million for 2021.
Headquartered in Ballineen, County Cork, Carbery Group is owned by four Irish co-operatives, Bandon, Barryroe, Drinagh and Lisavaird, and employs nearly 1,000 individuals, with 1,208 local farmer suppliers. Carbery operates from 12 locations, including Ireland, the UK, the USA, Brazil, Italy, Singapore, Indonesia, and Thailand, and sells its products in more than 50 countries worldwide.
On a constant currency basis, the EBITDA dropped by 4%. However, the group’s operating profit before interest, taxes, amortization of goodwill and other intangibles, and exceptional items (EBITA) rose by 5%, to €32.8 million compared to €31.2 million for 2021. This increase reflects a year-on-year rise of 5%, while a decrease of 6% was recorded on a constant currency basis. Furthermore, the Group’s EBITDA and EBITA figures for 2022 include the allocation of €10 million to the Stability Fund for shareholders and €3 million paid out to supplier shareholders under the FutureProof sustainability bonus.
CEO Jason Hawkins said, “We are pleased to report a successful year for Carbery to our shareholders that is in the form of a profitable revenue and business performance, characterized by record returns from product markets. Additionally, we managed this situation to build the future through initiatives that ensure stability for our shareholders, such as the Futureproof sustainability bonus for our suppliers, supporting shareholders on fixed milk contracts, and allocating €10 million to the Sustainability Fund to support milk price challenges through 2023.”
Milk volumes at the Carbery Ballineen plant decreased to 598 million liters (-2% from 2021), all processed in West Cork.
Chairman Cormac O’Keeffe said, “2022 was a banner year for milk prices, and we were happy to deliver these figures in line with shareholder requirements. Equally important for myself and the board was our commitment to preparing for the future. Therefore, with Futureproof, our sustainability bonus, we are providing tangible financial support from the Company to farmers in adopting sustainable and efficient practices, especially during these difficult times.”
Sustainability has been integral to Carbery’s corporate strategy since its establishment as a dairy co-operative in the 1960s. Carbery is committed to environmental sustainability, and its sustainability strategy includes the marketplace, community, supply chain, and people – recognizing that to operate truly sustainably, a firm must consider its impact on the planet and the communities and societies within which it operates.
The Group has recorded significant progress towards achieving its sustainability objectives. Greenhouse gas emissions have decreased by 5.5% across all global sites, thanks to a reduction in energy usage and a temporary change in energy source. Water usage across the Group has also fallen by 8.4%, following a comprehensive and proactive program of water reduction. In addition, production GHG intensity is down by 17.7%, notwithstanding production increases, while waste-to-landfill has reduced by 44.7%, thanks to an emphasis on waste management and a focus on redirecting waste to energy.
Carbery’s objective is to achieve net-zero carbon emissions for all manufacturing sites by 2035. To decarbonize its manufacturing facilities, Carbery intends to source sustainable renewable energy, a priority for the firm, in addition to reducing its Scope 3 emissions, particularly at the farm level.
In conclusion, Carbery’s financial success is reflective of its commitment to sustainability and its ability to adapt to the current market conditions, while remaining focused on the future.