IRELAND – Tirlán, formerly known as Glanbia Ireland, has reported a notable drop in turnover, reflecting the volatile nature of the dairy market.
The company, which supplies milk and grain products globally, experienced a 17% decrease in turnover due to plunging milk and grain prices, marking a challenging period for the industry.
Jim Bergin, outgoing CEO of Tirlán, acknowledged the difficulties faced by the company, describing the year as “extremely challenging.”
Despite the decline in turnover, Bergin remains optimistic about Tirlán’s prospects, emphasizing its strong core business and commitment to innovation.
“While circumstances remain challenging, we remain optimistic as we look to the future, as we have a strong, stable core business that is well-positioned to continue to invest and innovate for the future.”
The company’s operating profits also saw a 5% decrease, attributed to various factors including adverse weather conditions, input costs, and regulatory changes.
However, Tirlán managed to reduce its net debt significantly, reaching its lowest level in a decade, indicating prudent financial management amidst economic volatility.
John Murphy, Chairman of Tirlán, highlighted the resilience of the organization despite market headwinds.
He emphasized the company’s strategic investments and its Investment Fund, positioning Tirlán for future growth and expansion opportunities.
Despite the challenging market conditions, Tirlán remains dedicated to its shareholders, distributing bonuses and dividends to its members.
The organization paid a bonus of €5.8 million to members who traded with the co-op, in addition to a dividend totalling €6.5 million.
Looking ahead, Sean Molloy, who will assume the role of CEO on August 1, acknowledges the delicate demand dynamics in global markets.
He emphasized the importance of stability, particularly regarding the base milk price, in navigating the uncertainties of the year.
Molloy underscored the long-term growth potential of dairy demand, despite short-term challenges.
He points to global supply dynamics as a key determinant of price stability, expressing optimism about Tirlán’s ability to adapt and thrive in a changing market environment.
One of Tirlán’s significant initiatives for the year includes the opening of the Kilkenny Cheese production facility in partnership with Royal A-ware.
Positioned as Europe’s most efficient and sustainable continental cheese facility, the venture is expected to create jobs and contribute to Tirlán’s production capacity.
In conclusion, Tirlán’s financial results for 2023 reflect the impact of market downturns on the dairy industry.
Despite facing challenges, the company remains resilient, with a focus on innovation, financial stability, and long-term growth.
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