Milk Link Posts 2008/09 FY Results

UK dairy business Milk Link today announced its results for the year ended 4 April 2009.

Key financial highlights included:

  • Turnover increased from £523 million in 2008 to £547 million in 2009 (+4.6%); whilst turnover per litre increased from 37.7ppl in 2008 to 42.7ppl (+13.3%).
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA), reduced from £30.5 million in 2008 to £28.7 million in 2009 (-5.9%). This reflected the higher milk price paid to Members, the need for less profit to be retained in the business to meet bank covenants and the absence of cheese stock profits enjoyed in the previous year.
  • Profit Before Tax (excluding exceptionals) increased from £8.9 million to £10.1 million (+13.5%).
  • Operating costs reduced to £81.7 million from £83.6 million (-2.3%), despite significant increases in input costs, particularly those relating to energy.
  • Operating cash flow was £23.9 million - up from £17.0 million on previous year (+40.6%).
  • Net bank debt fell by £8.5 million to £76.1 million – down from £84.6 million at March 2008.
  • Total Member funds rose to £60.9 million as at year end.
  • Group gearing improved from 1.66 times to 1.25 times.
  • Average Member milk price paid out across the year increased by 4ppl to 25.6ppl.
  • Processing Interest Payment relating to 2008/09 financial year increased to £4.1 million representing a 10.8% return on Members’ Qualifying Loans.

Founded in 2000, Milk Link says it is the UK’s most progressive integrated dairy producer and processor. Wholly owned by British dairy farmers it processes their milk into a wide range of high quality dairy products including long life milk, creams, flavoured milks, custards, milk powders, yoghurts and dairy ingredients, supplying all of the UK’s major retailers and many of its leading food service and food manufacturing organisations. It is also the UK’s largest manufacturer of cheese, making a comprehensive range of award winning British cheeses.