Ireland-based Roebuck Food Group has divested its dairy business to an Irish dairy milking industry partnership.
The sale of Cantwellscourt Farm subsidiary, at €1.45m ($1.57m), marks Roebuck’s exit from dairy farming.
After settling debts, the company will receive €1.3m.
Cantwellscourt Farm, with 183 hectares and approximately 470 milking cows, produces 2.2m to 2.4m litres of A2 milk annually.
In the year ending December 31, 2023, the dairy division generated €1.6m in revenue but incurred a €500,000 loss after tax, with net assets at €1.44m.
Roebuck plans to allocate the funds for future acquisitions, investments, and general corporate purposes.
The company’s annual report for 2023 emphasizes a shareholder value focus through efficient capital allocation, culminating in the dairy division sale.
Prior to this, Roebuck sold its Norish cold storage unit to Japan’s Nichirei Corporation for €74m in 2021. Its portfolio also includes Townview Food Solutions and recently acquired Moorhead & McGavin.
In the full-year 2023 results, group revenue declined by 15% to £26.7m ($34m) while operating profit from continuing operations turned into a £1.66m loss.
The financial year’s loss from continuing operations amounted to £1.85m compared to a profit of £156,000 in the previous year.