irish dairy board full year results 2010

Full Year Results 2010

© Irish Dairy Board 2011 06/04/11


Presentation Outline

•Highlights 2010

•Our Business

•Financial Review

•Strategic Review

•Our Medium Term Plans


Highlights 2010


• IDB sales up 6% in 2010 to €1.9bn

• Record sales of Kerrygold with branded sales up18% in value and 7%

in volume

• Operating surplus (ebita) for the year of €26.9m

• €19.8m invested in our capital development programme

• Payout to members of €11.7m (€7.7m redeemable loan stock and €4m

year end cash bonus) and a further €2m has been allocated to the

annual bonus fund

• Net Assets up €18.5m to €402.9m at the year end

Financial Highlights


• Strategic Review process completed and the repositioning of the IDB

has begun

• Lean manufacturing programme commenced across our European

operations

• British Consumer Foods Businesses were consolidated under Adams

Foods Limited

• New Product Launches included Kerrygold Extra and BeoMilk

• Awarded Exporter of the Year 2010 and various marketing awards

• International awards included a prestigious Gold Award at the World

Cheese Championships in Wisconsin U.S.A and three awards for

Kerrygold Extra in Germany

Other Highlights


Our Business


Footprint spans the world

Committed to developing and building routes to market

Key role for the IDB is in

-identifying market opportunities

-harnessing consumer and customer insights to drive innovation

International Business with a Significant

Route to Market Network


IDB Operational Structure

Organised across 3 Business Platforms:

• Largest exporter of dairy

Ingredients on the Island

of Ireland

• Most developed supply

chain for exporting dairy

products on the Island of

Ireland

• List of blue chip customers

around the globe

• A presence in over 80

International markets with

3 International subsidiaries

Food Ingredients

• Kerrygold sales in 50

International markets and in

27 of these markets it is in

the top three brands

• Kerrygold No. 1 Imported

Butter into Germany and

the USA

• Pilgrims Choice – No. 2 retail

cheese brand in Britain

• Largest pre-packer of cheese

in Britain

Consumer Foods

• DPI, Specialty Foods is

ranked the No. 3 specialty

logistics company in the USA

• Broad geographic spread

• Operates from 5 strategically

located distribution centres

Distribution


Financial Review


Financial Results – Group Operating Statement

FY 2010 % Change

Turnover €1.9bn Up 5.7%

Operating Surplus €26.9m Down 33.2%Note 1

Exceptional Costs €3.0m -

Finance Costs €4.9m Up 5.2%

Payout to members €11.7m Down 13.3%

Capital Expenditure €19.8m Up 25.7%

Notes: 1 Pre-amortisation


By Activity By Destination

Britain (2009:25%)

Mainland Europe (2009:26%)

North America (2009:42%)

Rest of the World (2009:7%)

Consumer Foods (2009:36%)

Food Ingredients (2009:24%)

Distribution (2009:40%)

Group Turnover Analysis 2010


In 2010 Exports to International Markets rose by 3% to 22%

IDB Export Destinations - 2010

Mainland Europe (2009:49%)

Britain (2009: 32%)

ROW (2009:7%)

N. America (2009: 5%)

Africa (2009:5%)

C & S America (2009: 2%)


Group Turnover Analysis

• Group Turnover up 5.7% to

€1.9bn

• Higher global dairy prices

benefitted turnover

• Reduced volume sales in

US distribution business

• Solid performance from

Consumer Foods with

branded sales up 18% in value

and 7% in volume


Operating Surplus

• Margin compression in US

Distribution business resulted

in reduced profits

• Increased raw material prices

impacted on margins

• Increased marketing spend in

some global markets to

support growth strategy

• Investment in growth, talent

and re-organisation


Financial Results – Group Balance Sheet

FY 2010 FY 2009

Fixed Assets €147.8m €144.2m

Debtors €255.3m €193.5m

Stock €423.5m €334.4m

Other Assets €16.2m €18.7m

Less

Creditors €316.6m €280.2m

Net Debt €123.3m €26.2m

Net Assets €402.9m €384.4m Up 4.8%


Financial Results – Free Cash Flow

FY 2010 FY 2009

Trading Profit €24.3m €37.7m

Exceptional Items (€0.8m) -

Dep & Amort. €17.5m €18.5m

Change in W.C (€107.1m) €165.6m

Net Payment to Pension (€0.9m) (€3.6m)

Finance Costs and Tax (€10.3m) (€7.5m)

F.C.F before Cap. Ex (€77.3m) €210.7m

Cap. Ex(net) (€16.5m) (€15.7m)

Free Cash Flow (€93.8m) €195.0m


Strategic Review


• The development of a clear, focused vision for the future

• The establishment of an innovation and product development plan

• Selection and resourcing of our international growth markets

• Creation of a new acquisition programme and team to implement our

expansion plans

• The commencement of a refinancing programme to fund future

development

• The reconfiguration of our business model and right sizing some of our

business structures to support our growth plans

The Strategic growth plan in 2010 concentrated on


Our Medium Term Plans


IDB’s Medium Term Plans

Growth Platforms

• Management capability

development

• Performance culture drive

• Cost reduction & efficiency

drive

• Address unprofitable and

non core assets

• Reconfigure operational

& management structures

Structures

• Re-financing

• Funding for expansion

• Strategic growth plan

• Delivery of financial targets

Financial

• Focus on core dairy

• Brands

expansion & development

• Develop new routes to

market

• Consumer focused innovation

& investment

• Customer driven solution

selling

• Acquisitions

Full Year Results 2010


irish dairy board full year results 2010

Documents

business irish dairy

idb sales

kerrygold extra

specialty foods

year results

brands kerrygold

bn record sales of kerrygold

business platforms