ARRABAWN CO-OP has reported an operating profit of €1.26 million for 2009. The profit, which is before one-off items, marks a turnaround on a loss of €1.6 million in 2008.
Arrabawn chairman Michael Flaherty told the co-op’s annual general meeting in Nenagh, Co Tipperary, that the co-op had never faced such tough trading conditions as it had last year. Turnover for the year was €125.8 million, down from €165 million in 2008.
Arrabawn, which on Tuesday agreed to buy the Dawn Dairies milk business in Co Galway from the Kerry Group, said recession had led to changes in purchasing patterns, resulting in a drop in retail business in key areas.
“The retail sector is now dominated by own-label brands, and there is major competition both from indigenous dairies and from cheap imported milk,” Mr Flaherty told the meeting.
Its dairy division recorded turnover of €76.3 million, down from €100.8 million in 2008. This was driven by cuts in global dairy product prices, the co-op said.
Arrabawn’s trading division turnover was €49.5 million, down from €54.2 million, as a result of reductions in feed and fertiliser prices. Net debt was reduced by almost €2.3 million to €7.1 million, and shareholder funds increased by 5.6 per cent to €28.9 million.
