FDBusiness.com

Lakeland Dairies, Ireland’s second largest dairy processing co-operative, has reported an 18% increase in revenues to Eur472 million and a 52% rise in operating profit to €6.85 million for the year ended 31st December 2011.Lakeland exports to over 70 countries offering some 170 branded dairy products to customers. In 2011,Lakeland processed over 700 million litres of milk into a range of value added dairy food service products and food ingredients.

“While global economic and trading conditions continued to be difficult, it has been an excellent year for Lakeland Dairies where we are benefiting from our recent investments in advanced processing capabilities together with focused and intensive business development activities,” says Michael Hanley, chief executive of Lakeland Dairies.

He continues: “During the year, we further developed our market leading presence in Europe and expanded our position as the dairy foodservice market leader in the United Kingdom and in Ireland. We delivered specialist, value added products to the global foodservice, confectionery, bakery and other food industry sectors.  We are market leaders in emulsion technology where we provide dairy based products that delight our customers through their functionality and taste qualities in foods, whether that is in restaurants or retail.”

The turnover figure of Eur472 million was underpinned by strong sales, a maximised milk processing throughput, enhanced logistical capabilities and an ongoing operational efficiency programme across the organisation. This contributed to a further strengthening of the balance sheet with shareholders’ funds of Eur81 million at year-end.

Looking ahead, Michael Hanley comments: “The global economy has slowed with markets facing considerable uncertainties. Prices remain under pressure as food companies compete to retain market share among cost conscious consumers. There is also a global oversupply with surplus product coming onto the market from New Zealand and the United States in particular.  This will place significant pressure on milk processing returns throughout the year.  A weaker euro is required to make Irish exports more competitive. However, with continuing sales and volume increases we still anticipate further solid progress by Lakeland Dairies.”