ArraTipp reports strong performance following merger

Significant increase in operating profit for co-op

ArraTipp Co-operative has confirmed 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 10-month period from March to December, cover the initial phase of integration following the merger and surpass on key metrics the combined performance of the two legacy co-ops over the previous 14-month period in the run-up to March.

The performance underlines the effectiveness of a carefully planned and executed integration process but one that required some difficult decisions. These were primarily through cost improvements that, together with optimising synergies, have given ArraTipp a solid foundation for the years ahead.

OPERATING PROFIT INCREASES

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. EBITDA for the period stands at €26.2 million, while total overhead costs reduced significantly by 40%.

The co-op 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 position.

Key for shareholders/suppliers is that the co-op paid an average milk price of 47.1c per litre at base constituents 3.6%(fat) and 3.3%(protein), placing ArraTipp in the top one-third of the national milk price league table.

Cost containment underpinned this performance, including the winding down of the cheese facility in Tipperary. These measures, combined with a broader cost reduction programme, have resulted in a more efficient and streamlined organisation.

At the same time, the integration enabled valuable shared learning between both legacy organisations, with a ‘best of both’ approach emerging across teams and operations. A key part of the process was the re-branding of the new entity as ArraTipp. For over a century, Arrabawn Co-op and Tipperary Co-op have worked side by side with local farming families. Now united, ArraTipp is built on the belief that ‘together we grow’, with the aim of carrying on the proud legacy of collaboration with our farmers, our communities, our employees, and our customers.

STRONG PERFORMANCES

All three divisions — Dairy Ingredients, Tippagral (the France-based overseas cheese business), and Agri Trading — delivered strong performances during the past year.

ArraTipp also continued to invest in its future, including capital investment across its Nenagh and Tipperary sites, supporting the development of new product offerings such as fat-filled milk powder and spray-dried caseinate. It also invested significantly in its Tippagral site in France.

In addition, the co-op also revamped three of its retail locations in Athenry, Killimor and O’Brien Street in Tipperary town, reflecting ongoing commitment to its Agri trading business, which continues to expand both in range and scale. The recently introduced ArraTipp brand has been positively received by both shareholders and customers.

MAXIMISING VALUE

Looking ahead, ArraTipp is also focused on maximising value from its significant whey pool, with investments aimed at optimising product mix and delivering improved returns for shareholders.

The co-op confirmed that a recent milk supplier survey indicates a stable to slightly increasing milk pool, providing a positive outlook for future supply. Full details on the survey will be presented later this year.

While both legacy organisations entered the merger with established strategies, the ArraTipp executive team is now finalising a unified strategy for the combined business, which is expected to be presented to the Board by the end of June 2026.

Commenting on the results, CEO Eamon O’Sullivan said, “These results represent a strong first year for ArraTipp and are a clear reflection of the commitment shown by our staff, shareholders and Board throughout a period of significant change. While the year required difficult decisions and a sharp focus on cost reduction, we have emerged as a more efficient and resilient organisation. We are particularly encouraged by the performance across all divisions and the progress made in delivering synergies from the merger. Looking ahead, we see significant opportunity across product range and the continued growth of our overseas business, with our investment in TippAgral providing a strong platform for further expansion.”

SUCCESSFUL INTEGRATION

Chair Edward Carr added: “The successful integration of Arrabawn and Tipperary Co-op is a testament to the careful planning and disciplined execution by the management team. The Board is pleased with the progress made in year one, particularly in strengthening the financial position of the co-op. I would like to thank Eamon O’Sullivan, who has picked up very well from where his retired predecessor Conor Ryan left off, and his executive team , as well as all staff across ArraTipp for their commitment in what was a very successful year but also one that was not without it challenges. While there is more work to be done, the resilience and commitment shown across the organisation has laid a solid foundation for the future of ArraTipp.”