CROSS border dairy processing co-operative Lakeland Dairies has reported record revenues and profitability for 2018, underpinned by targeted business development activity, relative stability in global dairy markets and growth in volumes shipped.
It's the last time it will report as a single entity, following its merger with LacPatrick Dairies to form Lakeland Dairies Co-Operative Society Limited, the second largest dairy processor on the island of Ireland with a combined annual turnover in excess of £ 900m.
Overall sales at Lakeland rose by 5.3 per cent to £ 733.6m, yielding an operating profit of £ 15.8m, driven by strong returns from it three main business divisions, where it was able to capitalise on its significant economies of scale, benefiting from significant investments of recent years in technology, automation and lean operation across our processing footprint.
Its food ingredients division delivered revenue growth of 4.6 per cent to £ 443.4m, the foodservice division increased sales by 3 per cent to £ 223.5m and agri-trading division income soared 19 per cent to £ 66.7m.
It meant Lakeland ended the year with a balance sheet and shareholders’ funds of £ 117.7m, while its earnings before interest, taxes, depreciation & amortisation rose £900,000 to £30.5m, reflecting a consistently high level of operational efficiency and profitability from year to year.
The enlarged entity will have a cross-border milk pool of 1.8 billion litres, produced by 3,200 farms across a catchment area including 16 counties.
Lakeland Group chief executive Michael Hanley said: "Market conditions for 2019 will be contingent on factors including the still uncertain impacts of Brexit and the overall balance of global supply and demand across our product portfolio.
"We will always support milk producers to the maximum possible extent,and we will meet any potential headwinds by continuing to ensure complete efficiency and flexibility across all of our operations."
