Kerry Co-op to outline ‘future strategy plans’ later this year – Agriland.ie

The board of Kerry Co-op is expecting to outline its proposals for the future of the cooperative to shareholders later this year.

Over 50 years since its foundation, James Tangney, who was elected as chair of Kerry Co-op last December, has said that the co-op is now “at an inflection point”.

“As a board, we are working hard to ensure that the plans currently being developed will position the society and its shareholders on a sustainable platform to continue to prosper for the future,” he outlined in the co-op’s annual report for 2023.

Future strategy

In the report, Tangney noted that the Irish dairy industry has been at the core of the co-op’s establishment and continued success.

“There is much to consider as the industry changes over the coming years with regard to global markets, processing capabilities and investment requirements and the challenges of climate change and sustainable dairying,” he said.

“Akin to all other actors in the Irish dairy sector, we need to maintain and strengthen our core business for the benefit of all stakeholders of our society.

“As a board, it is incumbent upon us to devise a future strategy that will help us to achieve that objective,” he said.

Tangney said that the board is “actively working on the development of strategic options for the future success of the society in the context of Kerry Group plc milk contract ending in April 2026”.

“I expect that your board will be in a position later this year to outline future strategy plans to our advisory committees and membership and to proceed from there to putting our proposals in due course for shareholder consideration,” he said.

The Kerry Co-op chair stressed that “any fundamental decisions on future direction will be put to eligible shareholders in due course for their consideration and approval”.

“No binding decisions will be made without shareholder approval. Ultimately, we wish to ensure that future strategy will fairly benefit all our shareholding members,” he said.

Kerry Co-op is the largest shareholder in Kerry Group with an 11.3% stake in the company.

In April 2021, talks between Kerry Co-op and Kerry Group on a potential dairy business deal were suspended after over 18 months of discussions.

Kerry Co-op

According to the annual report, the Kerry Co-op recorded a profit after tax of €17.7 million for the financial year ended December 31, 2023.

This marks a significant increase on the figure of €8.2 million recorded in the previous year.

The accounts show that turnover was up from €20.1 million to €21.6 million in 2023, while operating expenses rose from €2.6 million to €3.3 million.

The total compensation for directors and directors that retired in 2023 amounted to €593,628, which is up from €509,050 in the previous year.

At the end of 2023, there were a total of 19 directors representing nine advisory areas across Kerry, Limerick and Clare.

The report shows that the co-op also spent €1,065,720 on legal and professional fees, up from €324,612 in the previous year, while salaries and pensions amounted to €360,424 (2022: €934,884).

The board has recommended the payment of share interest of €5.00/share on all shares held at the June 28, 2024, which, if approved by shareholders, will be issued on August 2.

Kerry Co-op has now completed 10 tranches of its share redemption scheme, with two tranches undertaken in 2023.

The price achieved in the June redemption scheme was €527.17, while in the October redemption it was €428.48.

On the grey market, the average price per co-op share was €443, with the highest price achieved being €590/share.

The annual general meeting (AGM) of Kerry Co-op will take place at 12:00p.m on Thursday, July 25 at Kerry Sports Academy in Tralee, Co. Kerry.