Connacht Gold Co-operative has reported a 13 per cent increase in turnover and an operating profit of just over €2m in 2010.
Turnover at the dairy, consumer foods and agri-business co-operative reached €300m in 2010 compared to €264m in 2009. Pre tax profit was €5m, up from €1.8m recorded in 2009, which was boosted by proceeds from a property disposal.
Connacht Gold chief executive Aaron Forde said the strong performance should be viewed against the backdrop of high unemployment, poor consumer confidence and difficult credit availability.
“On all key measurables, the company performed well which demonstrates the strength and resilience of our business.
“The increased turnover reflects volume growth across all business areas. Sales of consumer foods expanded significantly. Retail sales in agribusiness stores grew in spite of a very challenging environment. The livestock marts business had a record year while improved returns on international dairy markets were passed back to dairy farmers, resulting in a much-needed boost to incomes,” he said.
The business returned a strong cash flow of just under €6.7m for the year while a continuing rigid focus on working capital led to a reduction in bank borrowings, from €23.7m in 2009 to €17.2m. Connacht Gold spent over €5m in capital investment across the business, which employs 560 people directly. The focus on cost control across all areas of the business continued.
