Profits rise at Lakeland Dairies

Profits rise at Lakeland Dairies
By aisling kiernan

Lakeland Dairies has reported a 10% increase to €12.8m in Profit Before Tax, from revenues of €588.5m in 2015.

Group revenues of €588.5m reflect a 6% reduction due to global conditions where there is continuing pressure on the returns from the markets; Profit Before Tax increased by 10% to €12.8m and the Society concluded 2015 with a strong balance sheet and shareholders’ funds of €109m.

During the year, Lakeland Dairies also acquired Taste Trends Ltd, the leading UK based maker of Coolicious branded frozen yogurts and commenced the expansion of milk powder processing operations at Bailieboro in Co Cavan.

The co-operative opened a new Global Logistics Centre at its dairy foodservice manufacturing site in Newtownards, Co Down, and other dairy processing sites, including Killeshandra were also upgraded.

Milk supply volumes (currently 900 million litres of milk per annum) increased by 13% which contributed to overall efficiencies across all dairy processing operations.

“Lakeland Dairies continues to make strong progress,” said CEO Michael Hanley.

“As well as strategic developments, we have achieved positive business results in spite of volatile dairy market conditions.

“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.”

Mr Hanley went on to say that while times were difficult for dairy farmers, the co-op's priority was to achieve all future growth on a long term and sustainable basis, to maximise milk price and to minimise future market volatility for all its milk producers.

“We have,” he added, “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.”

Lakeland Dairies is a leading global provider of dairy products of quality, traceability and reliability across all applications.