South Caernarfon Creameries has revealed substantial improved financial profitability over the past 12 months. This announcement comes following the publication of the co-operative’s annual report to its members.
Members of Wales’ leading farmer-owned dairy co-operative will receive the benefits of the improved financial performance. Profitability has risen by 219% in the past year from an operating profit of £279,164 to £890,037. Member milk price has increased by 4.0 pence per litre during the year and member dividend and interest return is on average 6.5% on member capital. This positive performance increases the company’s net assets from £7.0 million to £7.4 million resulting in members’ share value increasing from £3.50 per share to £3.84
The company’s balance sheet remains strong with bank debt being more than halved from £4.0 million to £1.9 million and importantly, company debt as a percentage of members’ funds, has more than halved to 26%. This is now amongst the most conservative in the industry.
"We are satisfied with the financial results for the year. The work that we have undertaken over the past year has been in line with our strategy and this will continue as we very much focus on being a niche dairy business rather than a commodity producer. Profitability will remain challenging and difficult with the significant increase in raw material and fuel costs impacting on most businesses, however having tackled some difficult issues during the year we are better placed to meet those challenges and take advantage of the exciting opportunities that exists in the market place. Last year the Board approved a strategy with the mission being to deliver the best in class member returns by becoming Wales’ leading supplier of branded dairy products. We still have a lot to do to achieve our objective but are making good progress. Over the year, the business has been re-structured to better align itself to deliver upon its strategy" said Alan Wyn-Jones, Managing Director at South Caernarfon Creameries. "We are continuing to make steady progress in improving and strengthening the financial, commercial and operational performance of the Creamery and would welcome any dairy farmers who wish to join our co-operative."
