First Milk continues transformation, reports "solid trading result"

13 Oct 2017

UK farmer-owned dairy company First Milk has published its annual results which show what the company describes as a solid trading performance from a transformed business, delivering a net profit for the period of £6.0m ((2016: loss £5.1m).

First Milk continues transformation, reports solid trading result

UK farmer-owned dairy company First Milk has published its annual results which show what the company describes as a solid trading performance from a transformed business, delivering a net profit for the period of £6.0m ((2016: loss £5.1m). Operating profit (before exceptional items) was £11.7m (2016: £6.0m); group turnover was £206.5m (2016: £294.2m).

Operational highlights for the year included the signing of a new long-term contract for fresh milk supply to Nestlé UK and Ireland, and the agreement of a long-term cheese supply partnership with Tesco and Ornua Foods. The loss-making CNP sports nutrition business was sold in December 2016.

"Over the last two years, First Milk has transformed,” said chairman Clive Sharpe. “We have put in place a new business strategy, divested loss-making subsidiaries, improved our operational performance and implemented an effective co-operative governance structure.”

"The transformation of our business is complete and, as a result, First Milk today is now a more focused and financially secure business. This is demonstrated through these significantly improved financial results and, most importantly, through our ability to increase milk prices to our farmer members ahead of the market during the last financial year. I want to take this opportunity to thank all of the staff of First Milk, my fellow Board directors and, above all, our members for their hard work and commitment during the last year."

"It is clear that, following the transformation process that was completed before I joined, we have a focused and financially stable foundation to build from,” said CEO Shelagh Hancock, who joined the business in late March. “So now we must look to the future. Working as one team, we will continue our relentless focus on efficiency and quality. We will put customers at the heart of our business, creating value through strong, long-term partnerships and exploit the advantages we have to grow the business. The combination of these efforts is to deliver competitive total returns to our members.”

"I strongly believe that First Milk has got a bright future. I am confident that we can build on our solid relationships to create a strong and vibrant business capable of delivering competitive returns and providing opportunities that enable our members to grow and prosper."