Milk Link said it will continue to unlock the “latent potential” of the business during the next year as the UK dairy co-operative looks to develop new products focused on health.
The firm this morning (9 June) reported a “strong” annual performance as profits increased for the year.
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Profit before tax increased to GBP10.6m (US$15.4m) during the 12 months to 3 April, compared to GBP0.5m a year earlier, when a review of the business led to exceptional charges of GBP9.6m.
Turnover edged up 0.5% to GBP547m, while EBITDA increased 1.7% to GBP29.2m.
Speaking to just-food, Milk Link corporate affairs director Will Sanderson said the firm is now working on developments for its brands.
“In the last week or so we announced our new grip strip packaging and that work is ongoing. We will expect more of that to come through. Similarly our lighter cheese, that is developing very well and we have some very exciting plans for that in the new financial year,” Sanderson said.
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By GlobalData“You will see new brands and brand licences being developed by the business going forward as well. There is a lot more within the current structure of the business but we will also be looking to build business in other ways too. So we’ve got a full agenda for the year,” he added.
Sanderson said the firm has undertaken a “large amount” of structural changes in the business over the last financial year.
Milk Link closed a production site in Kirkcudbright, Scotland in May last year in a bid to consolidate all milk production into its Crediton dairy.
Sanderson said the firm has no plans to make any further closures, but will focus on driving efficiencies.
“We’ve undertaken a large amount of structural changes in the business over the last financial year, we bought a factory, we closed a factory, we built a new factory and we totally revamped another factory. We’ve done a lot of the hard yards and the benefits are now starting to flow through,” Sanderson said.
He added: “We’re certainly not thinking of any more closures, what we are doing is looking at driving as many efficiencies as we can and that is where the focus of our capital investment is this year. For example we will do more with our major packaging party in Austria, so we are doing a lot in that area so we will continue to drive, but nothing on the same scale of the last closure.”
Sanderson, however, said pressures will continue to come from the uncertain economic situation but he insisted the company remains confident in its strategy.
“There is a lot of pressure in the general economy, it’s well documented that we are going to be facing a period of austerity in terms of public spending cuts and tax rises. In the dairy industry specifically, we are still going through quite a period of consolidation and rationalisation in the industry. We imagine that will continue going forward. However, we do see ourselves as being positive force in that process rather than hanging back in that respect.”
Aside from the economy, Sanderson said pressure will also be placed on the dairy industry developing new products and responding to consumer trends.
“We imagine there will be greater pressure and greater demand for healthier lifestyle products and we made a good start on that with out lighter cheese. It’s a case of working very hard, looking for opportunities and keeping our head up at a time when there are going to be quite a lot of pressures in the market. But we feel we are in a good position from that respect,” Sanderson said.
