Volac Increases Turnover in Volatile Dairy Market
30 Sep 2015 --- Dairy nutrition company Volac has published its financial results for the 10 month period ending December 2014. During this 10 month period, turnover increased 1% from €265m to €268m compared to the previous full financial year and profit before tax decreased 10% from €25m to €22m.
Volac Chief Executive, James Neville, said: “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,” Neville concluded.
Sales outside UK & Ireland increased from 47% to 63% of total turnover despite a weaker Euro exchange rate, however, profit before tax decreased 10% primarily due to the change in accounting period. An ambitious investment programme and weaker Euro to Sterling exchange rate also contributed to profit decline.
On the outlook for the future, the company said in a statement: “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.”
