Farmer-owned co-operative Lakeland Dairies has recorded an annual revenue increase of 28% to €769.8 million in 2017, up from €601 million the year before.
The company made a substantially higher operating profit of €16.8 million, up from €7.2 million in 2016.
Profit before tax was €15.9 million during that period and the co-operative closed the year with a 15% increase in shareholders’ funds at €117.6 million. EBIDTA were €32.6 million, increasing significantly from €18.9 million in 2016.
“In 2017, Lakeland Dairies achieved performance improvements across all divisions of the business,” said Michael Hanley, group CEO. “Trading conditions were helped by a reduction in global milk supplies and product availability. We were able to take advantage of these conditions through our efficient processing capabilities and worldwide market presence, achieving satisfactory results.”
The company processed over 1.2 billion litres of milk in 2017, helped by its ongoing expansion among its 2,500 milk producers and a full year of milk supply from Fane Valley Dairies, which was acquired in May 2016.
The efficiencies being achieved through all operations enabled the removal of milk collection charges (cartage), with an overall reduction of costs of €5 million to milk suppliers annually, according to the company.
Lakeland’s surge in revenue will see it target opportunities across infant formulas, dairy proteins and health-related nutritional products.
“Our global growth has been driven by our strategy, investments, product range and the high quality output of our milk producers,” Hanley continued. “While there are challenges in the global market, it is our intention to continue to drive competitiveness and overall growth, targeting opportunities across infant formulas, dairy proteins and health-related nutritional products.”
The co-operative plans to achieve annual revenue of over €1 billion by 2021 through further innovation, organisational developments and further operational efficiencies.
“With the investments we have made, we are now in a position to process more milk than ever before,” Hanley said. “Our five year strategic plan envisages Lakeland Dairies achieving sustainable, profitable annual revenues of over €1 billion by 2021.
"This will require a specific focus on business performance improvements through continuous innovation, organisational development and further enhancements in operational efficiency.”
The Co. Cavan-based company operates across 15 counties on a cross-border basis, processing milk into a wide range of dairy foodservice products and food ingredients. it has a portfolio of 240 different dairy products which it exports to 80 countries worldwide.
Along with other Irish dairy co-operatives such as Glanbia and Dairygold, Lakeland imported animal feed for its members from abroad during the recent fodder crisis.
© 2018 Checkout – your source for the latest Irish retail news. Article by Kevin Duggan. Click subscribe to sign up for the Checkout print edition.