Lakeland Dairies’ revenues up 15% on last year - annual report

Business development and buoyant world dairy markets helped to increase Lakeland Dairies’ revenues by a reported 15% last year, a performance which has been welcomed by the co-operative’s head as “very satisfactory”.
Lakeland’s annual report published today outlines that revenues increased to €545.5 million for the period to December 31, 2013. This has yielded an operating profit of €11.7 million, up by nine per cent on the previous year.
The good news was reflected in Lakeland’s various divisions: Food Ingredients division revenues increased by €53.9m to €308.9m; Foodservice division revenues increased by €8.3m to €169.8m; while the Agri-Trading division’s revenues increased by 18% to €66.8m.
Lakeland Dairies ended the year with a strong balance sheet and shareholders’ funds of €87.1m.
“Buoyant world dairy markets, organic growth in customer demand and intense new business development activity yielded increased revenues and operating profits,” said group chief executive Michael Hanley.
“All divisions performed to the highest standards of efficiency in meeting global customer needs. We maximised returns from the markets through the flexibility and scale of our processing plants, driving milk into the highest value product categories in line with market trends. Lakeland channelled the benefits of its business growth towards producers with highly competitive milk prices for its farmer milk suppliers throughout the year.
“With a growing world population and the abolition of milk quota constraints in April 2015, the dairy sector holds considerable promise for the future. Lakeland has an intensive focus on new business development with high quality contracts and a growing customer base. Our dairy plants have world class technology, thereby maximising the value of every litre of milk sent to us for processing.”

‘Future growth’
Mr Hanley pointed to the co-operative’s new milk dryer at Bailieborough and their “major new global logistics centre” in Newtownards and their international distributor partnerships worldwide in explaining their strong position to expand supply.
“Lakeland milk suppliers have indicated that they will increase milk production in the years ahead, taking our milk processing to over one billion litres annually by 2020. Our increased milk processing intake will also be supplemented by new milk producer entrants and conversions from other sectors to dairy farming, all of whom will be welcome.
“Our priority will be to achieve all future growth on a long term and sustainable basis and to minimise any future market volatility for our producers. We will continue to pay a leading milk price while pushing all of our growing profits back into Lakeland Dairies which will remain a farmer owned and farmer controlled co-operative, working successfully in the direct interests of its stakeholders.”

Vision
Lakeland Dairies chairman, Padraig Young said, “Lakeland Dairies is a strong and successful business with the assets, resources and vision to ensure a bright future for milk producers.
“As a farmer owned dairy co-operative, our mission is to promote the long term future success of dairy farming and to provide the best possible returns from the market to our milk producers. In doing so, we are also contributing strongly to the sustainability of rural communities and the future success of the dairy industry - driven throughout our operating area by Lakeland Dairies.”