Annual Report 2009 - Dairygold

Dairygold Co-Operative Society Limited 2009 Annual Operations Report and and Financial Accounts Review 2009
Financial Overview
In 2009 Dairygold Co-Operative Society Limited generated an operating profit of €13.5
million of which €11.8m was generated from its core activities, with all the individual
businesses contributing to the performance.
2009 Key Financials
In 2009:
» Dairygold generated an
operating profit for the year
of €13.5 million - a profit of
€11.8 million on dairy (both
Ireland and overseas) and
agri-trading activities, with
a profit of €1.7 million from
share trading.
» Dairygold’s Shareholders’
Funds increased by €14.8
million from its 2008 position
of €205.3 million to €220.1
million.
» Dairygold’s Net debt position
increased from €68.2 million
to €77.9 million, an increase
of €9.7 million compared to its
2008 position.
» Dairygold invested a total of
€21.6 million of its cash in
capital expenditure (net of
grants) across the business
and in acquisitions, to meet
the future challenges of the
business.
Profit and Loss Account
» The turnover generated in 2009
decreased by €132.9 million versus
2008 from €688.1 million to €555.2
million. The decrease occurred
across the main business activities,
as dairy commodity product prices
fell significantly year on year as did
feed and fertiliser prices.
» The operating profit of €13.5 million
achieved in 2009 was an increase of
€11.2 million on 2008, an increase of
€12.3 million on core activities and
a reduction of €1.1 million on share
trading.
The increase in operating profit
from core activities was principally
attributable to the:
» performance of the individual
businesses which benefited
from the restructuring and
investment programmes over
recent years;
» achievement of significant
payroll reductions and lower
energy costs;
» re-alignment in the year of
milk and grain prices with
market returns, whereas in
2008 the Society supported
Members by paying milk
and grain prices in excess of
market returns.
» The share of associates’
performance before related
taxation was a loss of €1.0 million
in 2009 compared to a loss of
€1.9 million in 2008. The loss of
€1.0 million is driven primarily
by Dairygold’s share of the
performance of Reox Holdings plc.
» Net interest payable was €1.0
million. Net bank interest payable
of €4.3 million was offset by
RIBB interest of €2.5 million and
a finance credit of €0.8 million
relating to investment returns from
the pension schemes.
» The taxation charge for the year
of €0.9 million relates primarily
to share trading and overseas
subsidiaries.
» The profit for the financial year
was €9.3 million and the retained
profit was €8.1 million after paying
share interest of €1.2 million to
Members.
Balance Sheet
15