Annual Report 2014

We Are Ornua –
The Home of Irish Dairy

For more than 50 years the Irish Dairy Board Co‑operative Limited (IDB) has been a custodian of Irish dairy’s reputation and values; a pillar of the industry steeped in history and community that has given birth to the iconic Kerrygold brand.

The removal of EU milk quotas marks a new and exciting chapter in Irish dairying. For the past number of years, our business has been preparing for the unique opportunities this new era in dairying will bring. Through the implementation of a transformative strategy focused on the delivery of sustainable growth and enterprise;

we’ve built a global infrastructure, establishing a firm foothold in our chosen growth markets.

we’ve strengthened our core competencies – our brands, our technology and our scale.

we’ve invested in our people – in the knowledge that they are the true ingredients of our success.

A business with such reinvigorated ambition needs an identity that is fit for this new purpose. Ornua – The Home of Irish Dairy represents our proud dairy heritage whilst clearly embodying our vision for the future.

On the 23 February 2015, Members of the IDB voted in favour of changing IDB’s name to Ornua Co-operative Limited and have approved the adoption of a new corporate identity, Ornua. This new identity will be unveiled on the 31 March 2015 and will be rolled out throughout the business.

Chairman’s Statement

As Chairman, I am delighted to report on an excellent financial and trading performance by the IDB in 2014. Group Turnover in 2014 was up 10% to €2.3 billion, while Operating Surplus (EBIT), at €30.3 million, was up 17% and Profit Before Tax grew 23% to €28.1 million.

Chief Executive’s Report

Over the past number of years IDB has been strategically developing a global infrastructure to take advantage of the opportunities the removal of EU milk quotas will bring to the business. The Group is now ready to enter this period of momentous change – a new era for dairying.

Group Turnover

10%
2014€2,340m
2013€2,124m

Operating Surplus / EBIT

17%
2014€30.3m
2013€25.8m

Net Assets

4%
2014€436m
2013€417m

Members’ Bonuses

9%
2014€12.0m
2013€11.0m

Value Added Food IngredientsOpening of state-of-art facility at Thiel Cheese & Ingredients marks completion of $80 million expansion programme in the US Food Ingredients business.

Centre of Excellence for KerrygoldPlanning approved for new fully integrated butter production and packing facility for Kerrygold in Mitchelstown, Co. Cork.

Route to MarketAcquisition of a Spanish cheese business and the formation of IDB España. Acquisition of the business of FoodTec UK Limited, a specialist ingredients business in the UK.

Sustainability

2015 will be the beginning of a new era for Irish dairy. At the heart of this new era will be old traditions. Irish dairy farmers have been farming in harmony with nature for thousands of years. Our lush green landscape and temperate climate provide the ideal conditions for sustainable dairy farming and offer Irish produce a unique selling point in international markets.