Business

Cross-border dairy co-operative targets £875m turnover by 2021

Pictured at the Annual General Meeting of Lakeland Dairies are: Colin Kelso, vice-chairman; Alo Duffy, chairman; Michael Hanley, group chief executive and Peter Sheridan, chief financial officer
Gareth McKeown

FARMER-owned Lakeland Dairies is targeting £875 million turnover by 2021, its AGM has heard.

The co-operative's AGM, held last week heard the group's five-year strategic plan is targeting the achievement of over £875m in ‘sustainable and profitable' annual revenues by 2021.

The cross-border dairy co-operative's AGM was reviewing the annual report for 2017 which reported strong financial results. Group annual revenues increased by 33 per cent to £683m, up from £514.6m in 2016. This yielded an operating profit of £14.9m, compared to £6.2m in 2016.

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

Earnings before interest, depreciation, tax and amortisation (EBIDTA) were £28.9m, increasing significantly from £16.2m 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, Co Down, which provides continuing flexibility and opportunities in relation to any potential Brexit outcomes.

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.

In addition to the Banbridge centre, the group has a technologically advanced Global Logistics Centre and major dairy processing site in Newtownards, Co Down.

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