First Milk has hailed “solid progress” despite experiencing a 47% drop in pre-tax profits last year.
Accounts for the Glasgow- headquartered farmers’ co-operative reveal pre-tax profits of £3.43million for the year ended March 31 – down from £6.47m before.
Turnover for the year was up 22% to £252.7m and total group capital and reserves increased by £5.4m to £27.4m.
First Milk said the reduction in profits was a direct result of relative milk price improvements during the year.
Chief executive, Shelagh Hancock, said: “This second year of positive trading results demonstrates that First Milk is consistently delivering stable financial performance and making solid progress on strengthening and growing the business.
“Critically, we have done this whilst putting our farmer members back at the heart of the business and, most importantly, delivering improved returns to our members.”
She said the co-op was well placed for future growth.
“Our clear strategic focus is to drive profitable growth across our cheese and fresh milk businesses” added Ms Hancock.
“We have embarked on significant capital investment at our sites to support the growing demand from our customers, enabling our members to increase milk production with confidence. Through the implementation of this growth strategy in the years ahead we will deliver prosperity for our members.”