Arrabawn profits fall 46% to €1.14 million

Arrabawn Co-op has reported an operating profit of €1.14 million for 2012, a fall of 46 per cent on the figure of €2.1 million recorded the previous year.

Turnover at the Tipperary-based co-op increased marginally to €185.2 million, but profits before tax amounted to just €0.4 million, a decrease of €5.8 million on 2011 figures.

However when an exceptional item relating to a share disposal are excluded from the 2011 figures, the decrease in pre-tax profits is €1.15m.

Speaking at the co-op’s AGM in Nenagh today, Patrick Meskell said results had been negatively affected by a fall in return for dairy products.

“The reduction of returns on dairy commodities during the peak production period meant that the co-operative supported the price of milk over the key months of the year and this had an impact on our results,” he said.

The decline in dairy prices resulted in €12.4 million decrease in turnover in the society’s dairy division to €120.2 million.

Turnover in the trading division was up €12.5 million to €65 million, driven by increased feed sales, the company said.

Shareholders’ funds amounted to €35.3 million, the same as in 2011.

Arrabawn processes and distributes more than 40 million litres of milk every year, and produces a range of consumer products and dairy ingredients including casein, milk powder and whey. It is also involved in the supply of feed and agri-services, and operates a number of retail outlets.