Dairy nutrition company Volac has today [29th September 2015] published its financial results for the 10 month period ending December 2014. This is a shorter period than reported last year due to the realignment of accounting period to calendar year.
During this 10 month period, turnover increased 1% from £197m to £199m compared to the previous full financial year and profit before tax decreased 10% from £18.3m to £16.4m.
James Neville, Volac Chief Executive summarises: “Our sales growth in the last year reinforces our belief in the long-term future of the dairy nutrition markets we are involved in. Over the last year we have focused on delivering the benefits of previous investments which include silage inoculant capacity, our ERP system and our “Upbeat” consumer brand. In the 10 month reporting period we have continued to make revenue investments in our “Upbeat” brand, ERP system and in the completion of feasibility work for a Felinfach biomass green energy plant.
In July 2015 we established Volac Wilmar Feed Ingredients, a significant new joint venture between Volac and Wilmar International Limited, to develop an added value global animal feed fat business. The joint venture combines the nutritional reputation, global brand and sales network of Volac with the operational raw material logistics and scale of Wilmar to bring real benefits to our customers and make a significant contribution to the growth of Volac.”
Key metrics include:
Sales Growth
- Turnover rose 1% from £197m to £199m
- Sales outside UK & Ireland increased from 47% to 63% of total turnover despite a weaker euro exchange rate
- Turnover has included 100% of DVN sales since Oct 2013. This has contributed 5 months to the last financial year but 10 months to the reporting period ending December 2014
Lower Profit
- Profit before tax decreased 10% from £18.3m to £16.4m primarily due to the change in accounting period
- An ambitious investment programme and weaker Euro to Sterling exchange rate also contributed to profit decline
Increased Investment
Revenue Investments
- Continued investment in Volac’s Upbeat consumer brand, aimed at bringing the unique benefits of whey protein to mainstream consumers by combining health, taste and convenience
- Continued investment in new ERP system and related process and organisational developments in order to build an infrastructure supporting continued business growth
- Completed feasibility study into building a biomass green energy plant adjacent to the Felinfach factory to provide secure, efficiency and sustainable energy
Employees
- Up from 382 in previous year to 391 (average)
Outlook
The dairy industry is experiencing challenging times with supply exceeding demand leading to lower prices across the supply chain. Volac has a diverse business which improves the resilience of the business but it is not immune to the current dairy market situation.
Release Date
Tuesday 29th September 2015