Dale Farm records £12.2 million profits for 2019-2020

Northern Ireland dairy cooperative chief executive Nick Whelan has commended a “solid” year’s performance as Dale Farm records profits of £12.2 million.

Headline figures for the results for financial year ending March 2020 include:

  • Group operating profit was reported at £12.2 million (previous year £14.3 million);
  • Group profit before tax £9.8 million (previous year £12 million);
  • EBITDA (earnings before interest, taxes, depreciation and amortization) –  £19.3 million (previous year £20.9 million); and
  • Overall group turnover £504.5 million (previous year £509 million).

Whelan said: “I am pleased to report that Dale Farm is reporting a solid year of results for 2019-2020, achieved despite some weather-related challenges during that time. These figures are evidence that our strategy, now in its fourth year, is continuing to deliver.

Throughout 2019-2020, sales in a number of our product areas were negatively impacted by weather conditions.

“Our solid performance, despite these headwinds, is the combined result of continued investment, excellent customer partnerships and a team of hard-working, dedicated people in every part of our business.

“Our portfolio of dairy products in retail and foodservice across the UK as well as our global exports, performed well.

“Milk volumes and milk quality in the year were relatively strong, provided to the cooperative through a network of over 1,300 local dairy farmers.”

Image source DALE FARM

Previous years

Here’s how it compares to previous Dale Farm annual results:

2016/2017

Group operating profit up 9% to £9.8 million, profit before tax increased 16% from £6.8m to £7.9 million, with an associated EBITDA of £15.9 million.

Overall group turnover grew by 5.1% to £389 million.

2017/2018

Group operating profit up from £9.8 million to £12.1 million, profit before tax increased from £7.9m to £10.1 million, with an associated EBITDA of £18.1 million.

Overall group turnover grew by a record increase of 24% to £482 million.

2018/2019

Group operating profit up 18% to £14.3 million, profit before tax up 19% to £12 million, with EBITDA up 15% to £20.9 million.

Overall group turnover grew 5.6% to £509 million.

Current picture

“The impact of the Covid-19 pandemic is having a significant effect on our business and our dairy farmer members currently,” Whelan added.

“I am, however, confident in the talent and resilience of our people, the strength of our business model and the quality of the products we make.

“We always endeavour to pay a competitive milk price to farmers and ensuring we deliver on this will be our core focus. We will continue to reinvest and innovate so we can meet the needs of the consumer and ultimately best support our dairy farmer members.”

The firm’s most recent milk price (for June) is 24p/L plus 0.3p/L loyalty bonus. A price for July’s milk is expected within the next few days.

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