UK dairy co-operative Milk Link has booked a rise in annual profits as earnings from cheese improved, whey powder prices rose and the company benefited from restucturing measures.
The company today (8 June) reported an 18.9% increase in EBITDA to GBP34.4m (US$56.5m) for the year to 2 April. Pre-tax profit was up 43% to GBP15.1m.
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Sales, excluding Milk Link’s Westbury Dairies venture with Arla Foods and First Milk, were up 6.6% to GBP586m.
Finance director Tim Smiddy described EBITDA as the company’s “key measure of profitability” and said: “Cheese profits recovered as selling prices were more aligned to cost of milk, and as the benefits of various cost reduction initiatives and the restructuring of Llandyrnog were realised.”
He added: “Along with other dairy commodities, whey powder prices rose strongly during the year – although by the year end, they had fallen back considerably from their peak – providing a source of additional profit.”
Improved selling prices, a better product mix and an increase in milk volumes all contributed to Milk Link’s higher sales, Smiddy added.
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By GlobalDataMilk Link’s net profit – or profit attributable to the co-op’s members – was up 16.5% at GBP11.7m.
