Irish Dairy Board (IDB) sales were up 2.4% in 2012 compared with 2011, although this was attributed to favourable currency movement offsetting weakness in pricing. EBITDA, however, was up 10.8%.
The company noted that its spend on advertising and promotion had increased by €6m on the previous year, and had seen branded volumes rise by 7%. IDB said that it had ‘reinvigorated’ Kerrygold branding. UK sales of Pilgrims Choice cheese were up 31% year-on-year.
Over 50 new products and extensions were introduced by IDB during 2012, including Pilgrims Choice Lighter Extra Mature in the UK and Reduced Fat Dubliner in the US. Kerrygold Bratcreme – a liquid butter and rapeseed oil blend for cooking - was introduced to the German market.
IDB now has a 15.3% share of the German market, and saw its US sales achieve double digit growth for the year. The company said that it foresaw further investment in 2013.
According to IDB, it experienced ‘exciting’ growth in emerging markets following its investment in personnel, and in-market packing and marketing. It increased its in-market sales presence in Africa, the Middle East, Russia and China, and also saw sub-Saharan African market development in the DRC, Angola, Nigeria and North Africa. In Russia, IDB re-launched cheese in December 2012 and butter will be launched in May 2013.
In terms of capital expenditure, IDB added a new butter line to its German facility; doubled production at the Thiel site in the US with the installation of an ingredients facility; and created a dairy additives facility and innovation centre at Leek in the UK.
Pointing out that its acquisitions including The Cheese Warehouse, Thiel Cheese & Ingredients and Meadow Ingredients USA were performing either on, or ahead of, plan, IDB noted that it foresaw a potential acquisition in Saudi Arabia in 2013; that it saw a strong opportunity in North Africa in the coming 12 months; and that it continued to assess target companies in its core and emerging markets.
