Dairygold Co-Operative Society Limited has today (Wednesday, April 8) reported a turnover of €1.5 billion in 2025.

Despite a challenging year marked by "exceptional" market volatility, Dairygold said it delivered a "resilient financial performance".

The Munster-based dairy co-op has announced its financial results for 2025, reporting earnings before interest, taxes, depreciation and amortisation (EBITDA) of €52.7 million and an operating profit of €21.3 million, for the year.

While turnover was up €139.9 million (10%), EBITDA was down €12.7 million versus 2024, reflecting the "exceptional and severe fall in global dairy market returns that marked the second half of the year", the co-op said.

From August onwards, Dairygold said the significant decline in returns for cheese and butter, together with reductions across other dairy products, had a "material impact" on the co-op, and the overall dairy industry.

Optimisation programme

In March 2025, Dairygold launched its business optimisation programme, to deliver €14 million in cost savings over a three-year period.

During the year, Dairygold said €8.5 million in savings were delivered, €1.5 million ahead of target.

Last year, Dairygold invested €37.4 million in capital expenditure and reduced net bank debt by €22 million to €135.3 million, through the divestment of non-core assets and working capital management.

At the end of 2025, the net asset value of the society stood at €422.4 million.

Dairygold said it is a "significant driver" of rural economic activity across the Munster region, with the co-op paying close to €800 million to more than 2,400 farm families for milk and grain supplied during 2025.

Commenting on the results, Dairygold chief executive, Michael Harte said the "significant deterioration" in global dairy market returns from August onwards was the defining factor of the year.

"Despite this volatility, Dairygold delivered a resilient financial performance, with a clear focus on supporting members, reducing net debt and progressing the core strategic initiatives that underpin the long-term strength and sustainability of the society," Harte said.

“Throughout the year, we maintained a disciplined approach to operational efficiency and cost reduction, with €8.5 million in cost savings, delivered through our business optimisation programme.

"We continued to invest in our future growth platform, by continuing to develop the Vita Actives business, which remains central to our strategy to add value and diversify our earnings into higher margin growth activities."

Financial resilience

Harte said that these actions, combined with prudent working capital management and the divestment of non-core assets, enabled Dairygold to reduce net bank debt by €22 million, "further strengthening our financial resilience".

“The significant and disciplined investment made over recent years has ensured that Dairygold has world-class assets and a strong commercial strategy, providing a solid platform to drive efficiencies and value for members," he said.

"Our strategic priorities of optimising core operations, scaling Vita Actives, simplifying our portfolio and accelerating debt reduction, provide a firm foundation for long-term growth and member benefit.

"Throughout 2025, we continued to invest in the development of our people, to ensure the society has the capability to deliver on its strategy, for the benefit of all stakeholders.”

Focus on the future

Dairygold chairperson, Pat Clancy said that throughout the year, the co-op had a "clear focus on the future, through providing succession support, enhancing our representative structure to deliver more diversity and strengthening our communication with our members through meetings and digital platforms".

“Dairygold and our members continue to maintain a strong focus on sustainability, environmental compliance and water quality to enhance and protect our environment," Clancy added.

Clancy said that looking ahead, the long-term fundamentals of the sector remain positive.

"Global demand for dairy products continues to grow, underpinned by population growth, urbanisation and the rising demand for high quality, sustainable nutritional products," he explained.

"Dairygold is well positioned to deliver on these opportunities for the benefit of our members."

Milk production

In the first half of 2025, Dairygold said that positive market dynamics and favourable weather supported strong milk production.

This saw milk suppliers produce a total of 1.44 billion litres of milk in 2025, a 4% increase on 2024.

Dairygold’s peak week milk processing reached 44.4 million litres, while 2025 also saw suppliers record the highest ever level of milk solids per cow, at 454kg.

The average milk price paid was 53.8c/L, including constituents, sustainability and quality payments, and VAT.

Downturn

However, from August onwards, global dairy market returns experienced a significant downturn.

The sharpest decline came in August, just after peak milk processing, when finished product stocks across the industry were at their highest levels.

During the year, Dairygold said it further strengthened its product mix, with a strategic investment to increase casein production at its Mitchelstown facility, which is now one of the largest casein production plants in Europe following commissioning in 2025.

Dairygold is also investing in the diversification of a portionof its whey pool to meet growing global demand for high-protein whey products.

Agri Business

Dairygold’s Agri Business delivered a solid performance in 2025, with strong sales in feed, fertiliser and retail and a clear focus on supporting members, it said.

Last year, Dairygold purchased more than 106,000t of high-quality grain from growers.

The Co-Op Superstores Retail Business delivered turnover in excess of €100 million in the year, with the new Mallow Retail Park driving increased footfall, Dairygold said.

The overall Mallow Retail Park development is due for completion in 2026.

Dairygold’s nutraceutical and nutrition business, Vita Actives, continued to grow throughout 2025, with both revenue and profitability rising in line with expectations.

Vita Actives’ primary activities include the sourcing, supply and distribution of an expansive range of food and nutraceutical ingredients, to global customers, in the health and wellness, sports nutrition, pet nutrition, and cosmetics industries.

It continued to invest in scaling the business to expand its commercial reach, supported by sales teams located in the UK, Poland, Croatia, Germany, Italy, and the Benelux region.

Dairygold’s acquisition of a 59% shareholding in Vita Actives in 2023 enabled entry into the fast-growing nutrition sector, delivering on its twin strategic objectives of diversifying earnings and securing higher margin growth opportunities, Dairygold said.

As a prudent measure, required by accounting standards, a provision against reserves for the future acquisition of the remaining 41% shareholding of Vita Actives was recognised in the 2025 accounts.