Lakeland Dairies reports 10% increase to €12.8m in profit before tax
Despite the volatile global dairy market Lakeland Dairies has today reported that profits before tax increased by 10% to €12.8m
The co-operative today released its annual report for 2015 which show that group revenues of €588.5m reflect a six per cent reduction due to global conditions where there is continuing pressure on the returns from the markets.
They concluded 2015 with a strong balance sheet and shareholders’ funds of €109m.
Milk supply volumes (currently 900 million litres of milk per annum) increased by 13% which contributed to overall efficiencies across all dairy processing operations.
Foodservice Division revenues increased by 6% to €201.7m, bolstered by continuing business development initiatives.
Food Ingredients revenues of €324.4m reduced by 14% reflecting lower market prices where there is an oversupply of dairy products on world markets due to an increase in global milk production which is particularly evident in Europe. Lakeland Dairies Food Ingredients produced record volumes with 107,000 tonnes of milk powders exported last year, including caseins, and over 31,000 tonnes of butter.
Agribusiness Division revenues increased by 8% to €62.4m, based primarily on sales of 162,000 tonnes of high quality animal feeds and over 25,000 tonnes of fertilisers. Growth in feed volumes was supported by incremental new business and some increases in feed use following the abolition of milk quota.
“As well as strategic developments, we have achieved positive business results in spite of volatile dairy market conditions,'said Michael Hanley, Group CEO of Lakeland Dairies. 'We are focused on maximum efficiency across all operations. The balance within our business has enabled us to support milk price for our producers throughout the year.
“These are difficult times for dairy farmers. Our priority is to achieve all future growth on a long term and sustainable basis, to maximise milk price and to minimise future market volatility for all of our milk producers. We have invested considerably to ensure that we have globally competitive operations. We have the customers, product portfolio and economies of scale required to add market value to every litre of milk processed.'