Ornua reveals 2017 results for UK operations

Exporter of Irish dairy products Ornua has published its operating and financial results for the year ended 30 December 2017. The financial results of the individual UK operations of Ornua will be published later in the year.

Ornua Foods UK had a successful year across all areas of the business, despite the unprecedented rise in butter costs. Sales of both the Pilgrims Choice and Kerrygold brands grew in 2017.

Pilgrims Choice gained market share and further strengthened its position as the number two cheddar brand in the UK. The Kerrygold brand gained market share through the growth of its core range, which is now the number three block brand in the UK, and through the addition of the newly launched Kerrygold Spreadable range.

There was a continued focus on working with customers to deliver best-in-class category expertise, which resulted in growth in all core retail own-label cheese categories.

New packing technology, investment in its people and a continued focus on improvement delivered a positive step change in operational efficiency in 2017.

Ornua Butter Trading UK is a bulk butter trading business and major supplier to the UK food manufacturing and foodservice sectors.

On the back of record volumes in 2016, it increased sales volumes by a further 6.4% year-on-year in 2017. According to Ornua, it is now the largest single supplier of bulk butter to the sector.

The market was extremely volatile with availability through the mid-point of the year becoming particularly challenging across Europe.

Based across two sites – Whitchurch and Ledbury – Ornua Ingredients UK is one of the leading providers of cheese and dairy solutions to the UK foodservice and food manufacturing sectors.

During the year, the business continued to focus on delivering a range of dairy products, supported by product innovation and consumer insights.

Ornua Nutrition Ingredients UK is a specialist UK supplier of value-added, dry powdered food ingredients and products, serving UK food manufacturers and nutritional brand owners.

The business experienced volume growth in 2017 which was primarily driven by the first year of the integrated supply partnership with EasiYo, the New Zealand owned make-your-own yogurt brand.

In the UK, Ornua acquired and moved to integrate F.J. Need (Foods) Limited into Group operations and has expanded the business’s production capabilities.

Based in Cheshire, UK, F.J. Need supplies a range of British and Irish cheese ingredients to the foodservice and food manufacturing sector and is the owner of foodservice brand, Spinneyfields.

Post-acquisition, 2017 was a strong year for the business with sales volumes growing significantly. The combination of F.J. Need’s excellent reputation within the UK market, complemented and strengthened by Ornua’s trading expertise, supply and global recognition, enabled it to win a number of blue-chip customer contracts.

Recent investments in expanding the capabilities of the production facility allow the site to now supply cheese in grated, diced, deli block, sliced and other formats.

Furthermore, in preparation for the post-Brexit trading environment, Ornua is reviewing a range of strategic measures to help minimise any potential negative impact. It’s five UK businesses are said to be maintaining a focus on production efficiency, product quality, customer service and new product development so that it remains a supplier of choice in the UK market.

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