Lakeland Dairies has reported operating profits of €5.5m for 2007, completely reversing its operating loss of €7.2m the previous year. Turnover for the year increased by €43m to €455m.
Over the last 18 months, Lakeland said it has implemented a strategic restructuring plan which has enabled the co-operative to introduce new efficiencies into its business and to 'fully exploit the improved dairy market conditions'.
The group's foodservice division saw its turnover rise by 14% to €111m last year and it increased to 60 the number of export markets it now serves.
Its food ingredients section saw a 17% increase in turnover to 302m, on the back of strong dairy commodities because of increased Asian demand and continuing drought in Australia.
Its agri-trading divisions saw its turnover decrease by 31% to €41m, which the company said had been expected because of a major divestment of retail stores.
'The major drivers of global demand for dairy produce - population growth and increasing prosperity - are still relatively positive but the markets are significantly weaker this year with serious pressure from buyers seeking reduced costs,' commented Lakeland Dairies' CEO Michael Hanley.
