Business Review 2022
As a leading farmer-owned dairy processing co-operative, our goal is to provide food and nourishment at home and abroad with one of the island’s most abundant and natural treasures – pure, fresh milk.
With a heritage spanning over 125 years in the dairy industry, our progress is bolstered by the support and productivity of 3,200 dedicated farm families. We collect fresh milk daily, converting its constituents into a variety of wholesome food ingredients, foodservice products, and consumer foods, distributed from our technologically advanced facilities to leading food companies and consumers across the world.
The quality of our people and our strategic emphasis on research, development and innovation, coupled with an unwavering commitment to dependability and exceptional performance in all our operations, sets us apart. In tandem with this, we have the utmost respect for our environment’s sustainability and adhere to the strictest quality and traceability standards for all raw materials utilised.
Lakeland Dairies reported excellent results for 2022, based on a strong, progressive and resilient performance, in a deeply competitive and often uncertain global market environment.
LAKELAND DAIRIES - GROUP REVENUES: €1.9BN
Lakeland Dairies’ revenues increased by 45% to €1.9bn across its four operating divisions of Food Ingredients, Foodservice, Consumer Foods and Agribusiness, up by €590m on the prior year figure of €1.3bn.
This yielded an operating profit of €32.5m, up by €4.3m (+15%) and EBITDA (Earnings before Interest, Tax, Depreciation and Amortisation) of €60.2m, which increased by €4.8m.
During the year, Lakeland Dairies distributed €1.1bn in payments to milk supplying farms across 16 counties, spanning both the north and south of the island.
Lakeland Dairies closed the year with a strong balance sheet including Shareholders’ Funds of €273m.
FOOD INGREDIENTS DIVISION - REVENUES: €1.19BN
Food Ingredient revenues increased by 43% to €1.19bn, based on a very strong performance, where Lakeland processed extra milk volumes while meeting consistently high demand across its dairy food ingredients portfolio. This also resulted from ongoing investment in plant optimisation and efficiencies. The co-operative exported record volumes of milk powders and butter during the year, benefiting also from increased market prices.
FOODSERVICE DIVISION - REVENUES: €310.9M
Foodservice revenues increased by 39% to €310.9m, up by €87m on the prior year figure of €223.9m. This was achieved in spite of a difficult period for the global foodservice sector with continuing pandemic lockdowns and the war in Ukraine presenting challenges around cost inflation, supply chain disruption and fears of recession. Despite this, with a resumption of traditional service models and consumer behaviour, confidence returned to the sector enabling a more sustainable platform for business growth and development.
CONSUMER FOODS DIVISION - REVENUES: €272.9M
Consumer Foods experienced a 60% uplift in revenue to €272.9m, up by €102.7m on the prior year figure of €170.2m. This includes positive organic growth across Lakeland Dairies’ consumer portfolio of products including new listings and price adjustments which were necessary to address key inflationary pressures.
AGRIBUSINESS DIVISION (LAKELAND AGRI) - REVENUES: €125.3M
Lakeland Agri increased revenues by 45% to €125.3m based on a combination of strong operational performance and solid demand. 2022 was challenging given overall market volatility, including supply chain disruption due to the war in Ukraine and unprecedented increases in the cost of energy. While raw material costs increased significantly and this influenced animal feed prices, Lakeland Agri sought to minimise increases for all customers.
In the years ahead, we will seek to optimise all of the strengths and advantages that Lakeland Dairies has established to date while also seeking to grow and develop on an ever more sustainable platform. We are dedicated to our high-quality milk producers and to our valued customers, and they remain at the forefront of everything we do. Our ultimate objective is to ensure long-term market success for them.
Thank you to everyone who has supported Lakeland Dairies during 2022. We will continue our progress, growth and development in the knowledge that Together, We’re Stronger.
Colin Kelly, Group Chief Executive