Lakeland growth strategy on target

Farmer owned Lakeland Dairies, which has significant operations in Northern Ireland, aims to achieve of over £875 million in 'sustainable and profitable' annual revenues by 2021.

The all-Ireland co-operative's progress on its ambitious growth strategy was reviewed at its recent annual meeting. The AGM was reviewing the co-operative's annual report for 2017 which reported strong financial results. Group annual revenues increased by 33 percent to £683 million, up from £514.6 million in 2016. This yielded an operating profit of £14.9 million, compared to £6.2million in 2016.

Profit before tax was £14.1million in 2017 and the co-operative closed the year with a 19.5 percent increase in shareholders' funds at £104.3 million, up from £87.3 million the prior year.

Earnings before interest, depreciation, tax and amortisation (EBIDTA) were £28.9 million, increasing significantly from £16.2 million in 2016.

Milk volumes processed in 2017 increased to over 1.2 bn litres, reflecting ongoing expansion among Lakeland Dairies' 2,500 milk producers and a full year of milk supply from Fane Valley dairy farmers (following from the acquisition of Fane Valley Dairies in May 2016).

The co-operative has also retained and fully maintained its milk powder and butter facility at Banbridge, county Down, which provides continuing flexibility and opportunities in relation to any potential Brexit outcomes.

Lakeland Dairies has a technologically advanced Global Logistics Centre and major dairy processing site at Newtownards, county Down.

The efficiencies being achieved through all operations enabled the removal of milk collection charges (cartage), with an overall reduction of costs of £4.4 million to milk suppliers annually.

Farmer owned Lakeland Dairies operates across 15 counties on a cross border basis, processing milk into a wide range of value-added dairy foodservice products and food ingredients.

Lakeland has a portfolio of 240 different dairy products which it exports to 80 countries worldwide.

Pictured at the Annual General Meeting of Lakeland Dairies are (l-r) Colin Kelso, Vice-Chairman; Alo Duffy, Chairman; Michael Hanley, Group Chief Executive and Peter Sheridan, Chief Financial Officer.