ArraTipp Co-operative has said it saw a strong performance for last year’s financial year in its first annual report since the merger of Arrabawn and Tipperary co-ops in February 2025.

The results, which are for a ten-month period from March to December, cover the initial phase of integration following the merger, the new co-op said.

According to the business, the performance "underlines the effectiveness of a carefully planned and executed integration process but one that required some difficult decisions".

The co-op said that these decisions involved "cost improvements" and "optimising synergies".

The company reported an operating profit of €14.1 million for the period, up from €9.5 million on a combined basis for the previous 14 months.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the period stands at €26.2 million, while total overhead costs reduced by 40%, the business said.

The co-op said it also strengthened its financial position, with net debt reducing from €78 million to €53 million; shareholder funds increasing by €2.5m to €106 million; and cashflow improving from a negative €29.5 million to a positive €6.1 million.

The co-op paid an average milk price of 47.1c/L at base constituents 3.6%(fat) and 3.3%(protein).

According to the business, cost containment underpinned this performance, including the winding down of a cheese facility in Tipperary.

These measures, combined with a broader cost reduction programme, have resulted "in a more efficient and streamlined organisation", ArraTipp said.

The co-op said that integration "enabled valuable shared learning between both legacy organisations".

The ArraTipp Co-op has three divisions: Dairy Ingredients, Tippagral (the France-based overseas cheese business), and Agri Trading.

The co-op said all three divisions delivered strong performances during the past year.

ArraTipp carried out capital investment across its Nenagh and Tipperary sites, resulting in new product offerings such as fat-filled milk powder and spray-dried caseinate. It also invested in its Tippagral site in France.

Throughout the year, the co-op also revamped three of its retail locations in Athenry, Killimor and O’Brien Street in Tipperary town.

The co-op claimed that the recently introduced ArraTipp brand has been "positively received by shareholders and customers".

ArraTipp said it is focused on maximising value from its "significant" whey pool, with investments aimed at optimising product mix and "delivering improved returns".

According to the co-op, a recent milk supplier survey indicated a stable to slightly increasing milk pool.

Full details from that survey will be presented later this year, the business said.

ArraTipp said its executive team is finalising a "unified strategy" for the combined business, which is expected to be presented to the board by the end of June.