First Milk reports profit for year-end results
Image: First Milk
First Milk in the UK has improved the total returns to its farmer members and continues to increase turnover, deliver profitable growth, and progress its capital investment plans, it says in its annual report for the year ending 31 March 2023. Turnover has increased to £456 million (€530.7m), up 38%, while operating profit has remained steady at £5.1 million. The company invested capital to the tune of £7.4 million, while rising milk prices increased working capital requirements, and cheese stock value increased by £32.5m leading to net debt increasing to £63.9m (2022: £43.4m). The company has agreed a new partnership with Arla Foods Ingredients to produce a specialist whey powder at Lake District Creamery, and a new corporate rebrand has been introduced, to align visual identity with long-term purpose and goals. Additionally, First Milk received the top prize at the Global Cheese Awards for its cheddar, and the members have committed an additional 7% of land area to regenerative practices.
Commenting on the results, chief executive Shelagh Hancock says, “The last year has been tumultuous, with a roller coaster ride on milk prices and energy costs, creating challenges across the whole dairy supply chain, from farm to consumer. Yet, while these massively changing market dynamics have been challenging, the value we have in our secure contractual relationships meant that we were able to maximise the milk price paid to members as quickly as possible.
“Despite the volatile market conditions, our cheese business has continued to grow, we have completed a major investment at our Haverfordwest Creamery, and we have continued to progress our regenerative approach, receiving external acknowledgement of our progress through B Corp certification and the King’s Award for Sustainable Development. I am confident that we are on the right path and that growing recognition of our approach to regeneration will help to differentiate our offer and help us to deliver our vision of enriching life every day to secure the future.”