Company of the Month April 2022: Carbery Group experience a jump in revenue with strong dairy sales

Cork-based Carbery Group enjoyed a jump in revenue in 2021. The producers of Dubliner cheese and Carbery Cracker benefited from the current trend of strong dairy sales internationally. 

The firm experienced a 17% increase in revenue totaling €535.7 million in 2021. Carbery’s operating profit before interest and tax  also rose by 10% to €31.2 million.

A strong demand for dairy products in Asia along with a short global supply has led to an increase in price for butter, milk and cheese. The price increase has benefited Irish dairy companies and Carbery have capitalised on the current climate.

Production increased at the company in 2021 with 612 million litres of milk processed at their west Cork campus — an increase of 2.7% — as well as 63,000 tonnes of cheese. The Ballineen-headquartered plant is the largest producer of cheese in the Republic of Ireland and accounts for 25% of our national cheese output.

Carbery opened a mozzarella-production unit at Ballineen in 2020 and 10,000 tonnes of the new product were produced in 2021.  The company traditionally focuses on cheddar cheese which is reliant on the UK market and so the diversification saw continued growth for the firm.

Carbery Group have thrived in the midst of challenges currently facing the diary industry. Jason Hawkins, Carbery chief executive stated that the rise in costs were being felt by the business.

“We have seen certain costs like energy and freight significantly rise. We export the majority of what we produce, and we are fortunate that the demand for our products has remained strong, even throughout Covid. So, we are feeling the impacts, but heading into 2022 and its challenges with a strong performance in 2021 and confidence in our business strategy is helping to manage this,” he said.

Carbery expanded the company with the acquisition of Chicago-based international flavours company Innova last year. The company have also excelled from an ESG standpoint as they managed to reduce greenhouse gas emissions by 4.12% and water use by 17%.

Questions have been asked of the Irish dairy industry regarding its emissions footprint and deteriorating rates of water quality and Carbery appear to have the answer to sustainable growth. Its sustainability project ‘Farm Zero C’ continued its ambition to become a climate-neutral dairy-faming model with backing from Science Foundation Ireland.