June 12, 2009
UK's Milk Link pre-tax profits up 14 percent
Milk Link, an integrated dairy company in the UK, saw pre-tax profits grow nearly 14 percent in the year ending April 4, 2009, according to the company.
Turnover was up slightly at GBP547 million, with turnover per litre up to 42.7p. EBITDA dropped six percent to GBP28.7 million reflecting a higher member milk price and less cash to be retained to meet covenants.
Costs dropped slightly to GBP81.7 million, despite increases in input costs, particularly energy, with further savings expected from the company's exit of dairies at Staplemead and Kirkcudbright.
Chief executive Neil Kennedy said Milk Link had paid down its bank debt by GBP8.5 million to GBP76.1 million, and farmgate milk price is up by 4p/ litre which is higher than the DEFRA average farmgate price by 1p/litre.