Thomas Lyons 
Dairygold, the Irish dairy co-op, is reportedly seeking new investment opportunities in assets that are not dependent on milk. Conor Galvin, CEO of the Mitchelstown-based co-op, revealed this strategy in the company’s latest annual report, which showed that Dairygold’s turnover from non-core activities fell by €8.6 million to €13 million in 2022. The decrease was mainly due to a drop in property sales compared to the previous year. Despite this, the company’s fixed assets at the end of the year amounted to €432.5 million, down €2.6 million from the previous year. Dairygold attributed the decrease to depreciation, amortisation, impairment charges, a decrease in other investments, disposals of investment properties, and an unfavourable translation adjustment. However, the company’s capital expenditure and increase in joint ventures and associates offset some of these losses. Dairygold’s net asset value increased by €35.6 million to €457.8 million in 2022. Overall, the company reported a record turnover of €1.65 billion last year, boosted by high dairy market prices, resulting in a historically high milk price for farmers.
Despite the record turnover, Dairygold’s latest financial results reflect a mixed performance from its non-core assets outside of milk, both in relation to the co-op’s financial investment portfolio and its investment properties. The market value of the quoted financial assets decreased by €3.5 million in 2022 to €31.8 million, which included €600,000 transferred from commercial property sales’ proceeds. Dairygold explained in its annual report that the decrease in value reflected the general reduction in global equities during the year. The co-op sold its FBD shareholding during 2022, and the proceeds from this sale were reinvested in its diversified financial assets portfolio. Dairygold held €50 million of non-core property assets at the end of last year, and one of its key achievements in 2022 was securing dual planning permission from An Bord Pleanála for Creamfields, a major residential scheme in Cork City.
Galvin acknowledged that 2022 was an extraordinary year for dairy prices, and while the co-op’s net bank debt increased by €24.1 million to €132.3 million, he deemed it to be at a manageable level, especially given the significant working capital headwinds in 2022. He believes that this level of debt, combined with new banking facilities of €360 million, will give Dairygold the headroom to progress its strategic ambition to invest in higher margin growth opportunities.
In line with this strategy, Dairygold is actively seeking new investment opportunities that are not milk-dependent. The co-op’s latest annual report shows that the turnover from Dairygold’s non-core activities fell by €8.6 million to €13 million in 2022, primarily due to a decrease in property sales. Despite this, Dairygold closed the year with fixed assets totaling €432.5 million, down €2.6 million from the previous year. The company’s net asset value increased by €35.6 million to €457.8 million in 2022. Dairygold reported a record turnover of €1.65 billion last year, boosted by high dairy market prices, resulting in a historically high milk price for farmers.
Dairygold’s latest financial results reflect a mixed performance from its non-core assets outside of milk, both in relation to the co-op’s financial investment portfolio and its investment properties. The market value of the quoted financial assets decreased by €3.5 million in 2022 to €31.8 million, which included €600,000 transferred from commercial property sales’ proceeds. Dairygold explained in its annual report that the decrease in value reflected the general reduction in global equities during the year. The co-op sold its FBD shareholding during 2022, and the proceeds from this sale were reinvested in its diversified financial assets portfolio. Dairygold held €50 million of non-core property assets at the end of last year, and one of its key achievements in 2022 was securing dual planning permission from An Bord Pleanála for Creamfields, a major residential scheme in Cork City.
Galvin acknowledged that 2022 was an extraordinary year for dairy prices, and while the co-op’s net bank debt increased by €24.1 million to €132.3 million, he deemed it to be at a manageable level, especially given the significant working capital headwinds in 2022. He believes that this level of debt, combined with new banking facilities of €360 million, will give Dairygold the headroom to progress its strategic ambition to invest in higher margin growth opportunities. Dairygold’s CEO, Conor Galvin, has revealed that the company is actively seeking new investment opportunities that are not dependent on milk. The co-op’s latest annual report shows that the turnover from its non-core activities fell by €8.6 million to €13 million in 2022, mainly due to a decrease in property sales. Despite this, Dairygold closed the year with fixed assets totaling €432.5 million, down €2.6 million from the previous year. The company’s net asset value increased by €35.6 million to €457.8 million in 2022. Dairygold reported a record turnover of €1.65 billion last year, boosted by high dairy market prices, resulting in a historically high milk price for farmers.
However, the latest financial results reflect a mixed performance from Dairygold’s non-core assets outside of milk, both in relation to the co-op’s financial investment portfolio and its investment properties. The market value of the quoted financial assets decreased by €3.5 million in 2022 to €31.8 million, which included €600,000 transferred from commercial property sales’ proceeds. Dairygold explained in its annual report that the decrease in value reflected the general reduction in global equities during the year. The co-op sold its FBD shareholding during 2022, and the proceeds from this sale were reinvested in its diversified financial assets portfolio. Dairygold held €50 million of non-core property assets at the end of last year, and one of its key achievements in 2022 was securing dual planning permission from An Bord Pleanála for Creamfields, a major residential scheme in Cork City.
Galvin acknowledged that 2022 was an extraordinary year for dairy prices, and while the co-op’s net bank debt increased by €24.1 million to €132.3 million, he deemed it to be at a manageable level, especially given the significant working capital headwinds in 2022. He believes that this level of debt, combined with new banking facilities of €360 million, will give Dairygold the headroom to progress its strategic ambition to invest in higher margin growth opportunities.
In conclusion, Dairygold is seeking new investment opportunities that are not milk-dependent, as revealed by its CEO, Conor Galvin. The co-op’s latest annual report shows that the turnover from its non-core activities fell by €8.6 million to €13 million in 2022, primarily due to a decrease in property sales. Despite this, Dairygold closed the year with fixed assets totaling €432.5 million, down €2.6 million from the previous year. The company’s net asset value increased by €35.6 million to €457.8 million in 2022. Dairygold reported a record turnover of €1.65 billion last year, boosted by high dairy market prices, resulting in a historically high milk price for farmers. However, the latest financial results reflect a mixed performance from Dairygold’s non-core assets outside of milk, both in relation to the co-op’s financial investment portfolio and its investment properties. Dairygold’s CEO believes that the company’s manageable level of debt, combined with new banking facilities, will give Dairygold the headroom to progress its strategic ambition to invest in higher margin growth opportunities.
