Cross-border dairy co-operative Lakeland Dairies has reported higher revenues and profits for 2024 after what it called a strong performance for the year.
Lakeland Dairies said its group revenue increased to €1.75 billion last year from €1.6 billion in 2023, on the back of an increase in value-add sales as well as a rise in general dairy market pricing – particularly for butter in the second half of the year.
Earnings before interest, tax, depreciation and amortisation (EBITDA) for the year rose to €73.3m from €43.4m in 2023, while its net profit before tax amounted to €21.3m – a significant improvement on the loss of €9.75m in 2023.
Lakeland Dairies said that 2024 was a critical year for the co-op as it executed its growth and development strategy including the purchase of Belgian business De Brandt.
The co-op processed 2 billion litres of high-quality milk collected from 3,200 farm families in 17 counties across the island of Ireland.
Despite global market uncertainty, a total of €998m was issued in milk payments to farmers during the year.
Lakeland Dairies Chairperson Niall Matthews noted that 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,” Mr Matthews said.
“Our aim was to support our farmers who produce a world-class, sustainable and nutritious product with a sustainable and competitive milk price. In total, we issued €998m in milk payments to our farmers over the course of 2024. This proves the critical importance of the dairy industry in ensuring we have a balanced regional economy,” he added.
He also said that despite the obstacles encountered by its farm families, Lakeland Dairies processed a record tonnage of milk solids in 2024.
“Making strategic decisions to benefit our farm families and everyone in our co-op is the key focus of the Board of Lakeland Dairies. We have real momentum now as the decisions and investments we have made are moving us up the value-add chain to support the long-term operations of our farm families,” the chairman added.
Lakeland Dairies group chief executive Colin Kelly said that following a challenging 2023, where everyone in the co-op displayed remarkable resilience, 2024 was a very successful year for Lakeland Dairies with turnover, EBITDA and profits all increasing.
“2024 was one of the most strategically important years in the 130-year history of Lakeland Dairies as we continued to make strategic decisions to benefit the co-op and our farm families in the short and long term,” Mr Kelly said.
“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,” he added.
