Record sales and almost triple profits for the COREN cooperative in 2023, driven by solid operational performance and prudent financial management
The Ourense-based cooperative COREN has closed the year 2023 with unprecedented financial results, marking a milestone in its history with turnover reaching €1.127 billion. This figure represents a significant increase of 8% compared to the €1.048 billion recorded in the 2022 financial year. The growth in turnover was accompanied by a spectacular improvement in profitability, as the cooperative’s net profit rose to €15.1 million, representing almost triple the €5.8 million achieved in the previous year. This notable increase in earnings underscores the operational efficiency and sound management strategy implemented by COREN during the period under review.
COREN turnover in 2021: €864 M
COREN turnover in 2022: €1,048 M
COREN turnover in 2023: €1,127 M
Poultry, the livestock sector generating the most business for COREN
Among the company’s main production lines, the poultry sector continues to stand out as the one generating the highest business volume: 35.1% of sales in 2023 were attributable to this sector. Feed manufacturing maintains its importance, accounting for 21.8% of total sales. One of COREN’s strategic priorities in recent years has been its swine production line, and this segment experienced an increase of 4.8 percentage points compared to 2022, bringing its share to almost 21% of annual sales. Beef cattle generated 12.1% of activity.
“The expectation is that growth will continue in the coming years, consolidating presence in the domestic market — which accounts for 87.2% of turnover — and expanding internationally. The objectives are to continue promoting higher added-value products by increasing their market share, and to continue improving the main processing facilities (poultry, swine and beef cattle) with a view to optimising efficiency and costs across all production processes,” the company explains.
Exports now account for 13% of COREN’s business
A more detailed analysis of COREN’s annual report reveals solid operational performance, evidenced by a 33% growth in EBITDA (earnings before interest, taxes, depreciation and amortisation), which reached €39 million in 2023, compared to €29.3 million the previous year. This increase in EBITDA reflects the cooperative’s capacity to generate greater operating cash flow. Likewise, the operating result, which measures profitability directly linked to the company’s core activity, nearly doubled, rising from €10 million in 2022 to almost €20 million in 2023. This figure highlights the strength of COREN’s core business and its efficiency in generating profits from its operations.
Regarding the geographical and sectoral distribution of its commercial activity, COREN maintains a strong presence in the domestic market, which accounts for 87% of its total revenue. The remaining 13% of turnover corresponds to exports to other countries, indicating market diversification, although with a clear predominance of the Spanish territory. When analysing sales by sector, the poultry division stands out as the cooperative’s main source of income, representing 35% of total sales. This is followed in importance by the feed sector, contributing 22% of turnover, and the swine sector, contributing 21%. This sectoral distribution shows diversification within the agri-food sphere, albeit with significant weight from poultry production.
Debt reduction and divestments
COREN’s financial management during 2023 also deserves special mention, as the annual balance sheet reports a debt reduction policy. Specifically, short-term debt with financial institutions decreased from €36 million to €31 million, improving liquidity and reducing short-term financial costs. Additionally, a significant amortisation of long-term debt was achieved, which was reduced from €108 million in 2022 to €67.7 million in 2023. This substantial reduction in long-term indebtedness strengthens the cooperative’s financial position and reduces its exposure to future fluctuations in interest rates.
COREN’s strategy in 2023 also included selective divestments that generated positive results. The cooperative divested its 50% stake in Global Loan, a Málaga-based property company, obtaining a positive result of €1.9 million. Likewise, the sale of its stake in PT Indogal Agro Trading generated revenue of €2.8 million and a profit of €368,000. These strategic divestment operations contributed to improving the cooperative’s overall profitability.
Finally, an indicator of COREN’s growth and expansion during the past year is the increase in its workforce. The cooperative recruited 127 new employees, bringing the total headcount to 2,466. This increase in the number of staff reflects the expansion of operations and the need to meet the company’s growing production and management demands. Overall, the 2023 results demonstrate a year of solid sales growth, a notable improvement in profitability, prudent financial management, and a commitment to growing the human team at the COREN cooperative.