Lakeland reports €21m net profit before tax after 2023 loss
Lakeland Dairies has reported a net profit before tax for 2024 of over €21 million, after the almost €10 million loss incurred in 2023.
The processor has announced its financial results for 2024, saying it has seen "strong performance for the year".
Group revenue increased to €1.75 billion from €1.6 billion, which Lakeland said came as a result of an increase in value-add sales, as well as an increase in general dairy market pricing, particularly for butter in the second half of 2024.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for 2024 was €73.3 million, compared to €43.4 million in 2023.
Net earnings before tax was €21.3 million, a "significant improvement" on the loss of €9.75 million in 2023.
The group reported an operating profit (before exceptional items) of €42.2 million, compared to €14.8 million for 2023.
The business' foodservice/consumer foods division saw revenues of €531 million, unchanged compared to 2023.
Revenues in the food ingredients and agribusiness divisions were recorded at €1.1 billion and €113 million respectively (up from €955 million and €112 million, respectively, in 2023).
The business processed around two billion litres of milk in 2024, collected from roughly 3,200 suppliers in 17 counties on both sides of the border.
Lakeland said it paid a total of €998 million in milk price to its suppliers last year.
The business said 2024 was "critical year", seeing increased financial results after "an unprecedented collapse in global dairy markets in 2023".
Lakeland said it executed its "growth and development" strategy, which included the purchase of Belgian butterfat business De Brandt, which the processor said is delivering added-value returns.
Commenting on the 2024 financial results, Lakeland chairperson Niall Matthews said: "The year 2024 brought volatility for the farm families of Lakeland Dairies and their co-op. The first half of the year was extremely difficult with challenging weather conditions coupled with stubborn input prices.
“Thankfully, as weather conditions improved, so did global dairy markets and the second half of the year was better. Our aim was to support our farmers who produce a world-class, sustainable and nutritious product with a sustainable and competitive milk price," Matthews added.
He said: "Despite the obstacles encountered by our farm families, Lakeland Dairies processed a record tonnage of milk solids in 2024. This is a testament to both the resilience of our farmers in the year and the fruits of better genetics and management at farm level.
"2024 was also an important year as we continued to step out our ambitious and innovative strategy, 'Foundations for a Better Future', which aims to deliver sustainable prosperity to our farm families.
Matthews also said that the processor embarked on "full-scale representation campaign" with ministers and politicians on issues including the nitrates derogation, inheritance tax, TB and generational renewal.
"We will continue to press home the message of the critical importance of dairying to the economy as well as the huge work farmers have long been undertaking to make positive changes to improve [the] environment," the Lakeland chair said.
Colin Kelly, the processor's group chief executive officer, said that 2024 was "one of the most strategically important years in the 130-year history of Lakeland Dairies".
"The decisions we made as a business in 2023 and 2024 are now bearing fruit.
"We have in place a comprehensive, ambitious and exciting strategy called 'Foundations for a Better Future' which is guiding us on a journey of added-value while ensuring we have an unrelenting focus on operational excellence and efficiency," Kelly said.
"I am hugely excited about the future for Lakeland Dairies for our farm families, our people and our communities," he added.
