LAKELAND Dairies has cited the pressures and challenges from the global dairy market collapse as the reason behind the significant drop in its annual profits and revenue.
Last week the cross-border dairy giant reported that in the last financial year its group revenues dropped to €1.6 billion from €1.9 billion the previous year. Over the same period its EBITDA (earnings before interest, tax, depreciation and amortisation) fell from €60.2 million to €43.4 million.
The drops come after what was a record year for profits for Lakeland Dairies in 2022.
Chairman Niall Matthews noted while 2023 had been a tough year for the industry, 2024 had more positive so far.
“In what was one of the most challenging years for the dairy industry, farmers and processors both demonstrated tremendous resilience in the face of enormous pressures,” he said.
“Whether it is inside the farm gate or at processing level, we are all committed to maximising efficiency to ensure that we were as lean as possible.
“Thankfully, the global markets in 2024 have been more positive which is critical given the very challenging weather conditions we have endured since the end of 2023.”
Chief executive officer Colin Kelly added there were no farmers or processors who were “disappointed to see the back of a year that challenged us at all levels.”
“Global markets collapsed, costs at farm and processor level remained stubbornly high, interest rates reached levels not seen for decades, and inflation impacted every one of us both inside our homes as well as inside the business,” he said.
“However, despite all these challenges, the financial strength of the co-op and our robust balance sheet ensured that we were well-placed to navigate this volatility.
“Our revenues, EBITDA and operating profit before exceptionals all show a strong and resilient co-op.”
Cavan-based Lakeland Dairies, which merged with LacPatrick Cooperative in 2019, is the largest cross-border farmers cooperative on the island, collecting milk from 3,200 farming families north and south, including many here in Fermanagh, and supplying two billion litres of milk each year.
Its dairy products are exported to over 100 international markets and the company has a turnover of €2 billion.
In March it announced it had acquired continental butterfat business De Brandt Dairy International NV, along with its customer base and other key assets of the business.
The company said that despite the global market challenges, it issued close to €800m in milk payments to farmers throughout 2023.
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