Lakeland’s profits up despite Brexit concerns

Lakeland Dairies has reported an operating profit of €17.5m for 2018, up from €16.8m in 2017, while highlighting Brexit outcomes as the main uncertainty for the year ahead.

The cross-border dairy processing co-op’s figures are based on group revenues of €810.5m for the year, up 5.3%, from €769.8m, in 2017. The three main divisions all increased revenues in 2018: food ingredients (4.6%) to €489.9m, foodservice (3%) to €246.9m, and agri-trading (19%) €73.7m.

“We were also able to capitalise on our significant economies of scale, benefiting from the significant investments of recent years in technology, automation, and lean operation across our processing footprint,” said said Michael Hanley, CEO, Lakeland Group.

“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 meet any potential headwinds by continuing to ensure complete efficiency and flexibility across all of our operations, while at all times paying the highest-possible milk price, in line with market conditions.”

At the end of 2018, shareholders’ funds were at €130m, up €12.4m for the year. Earnings per share were at €33.65m in 2018, up by €1.05m, from €32.6m, in 2017.