Dairy co-operative sales increase 23%
Its profits before tax rose sharply to €4.5m up from €1.4m.
Group chief executive Michael Hanley said “2010 was a broadly positive year” for the north east based group.
Much of the upturn was directly attributable to growth in the group’s key markets buoyed up by stronger demand as the world recession eased in many parts of the world.
This continuing and gradual recovery has helped to sustain a rise in demand for dairy products globally, raising market prices to improved levels.”
Lakeland exports to over 70 countries, offering some 170 branded dairy products to customers throughout the world.
In 2010 the group processed over 700 million litres of milk into a range of value added dairy foodservice products and food ingredients.
The co-op has a strong balance sheet and finished the year with shareholders funds of €76.7m, he said.
The foodservice operations performed strongly with a 14% increase in revenues to €130m accounting for 32% of Lakeland Dairies’ total sales.
The group’s approach in that category is guided by market research into evolving consumer trends, said Mr Hanley.
“We built further on the progress of recent years with new product developments and the targeting of new opportunities.
The launch of its new Modern Milk-flavoured product range into segments of the British market has been a success and the group will continue to exploit that market segment, said Hanley.
Food ingredients sales, in the group’s other core division, reached €232m, up 31% on the prior year boosted by higher demand in Russia, China, India and the Middle East.
Earlier this year Lakeland opened its new €20m technologically advanced milk powder plant in Bailieboro facilitating significant consolidation of its processing and important cost savings.
Despite a few tough years he remains optimistic. “We should look forward with self belief towards the future,” he said.
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