Dairy nutrition company Volac has today [24 November 2014] published its results for the financial year ending February 2014. During this period, turnover increased 38% from £143m to £197m. The company invested in systems and strategic projects that will position Volac for future growth, which contributed to a profit decline of 21%.
James Neville, Volac chief executive summarises: “Our strong sales growth this year reinforces our belief in the long-term future of the dairy nutrition markets we are involved in. Our commitment includes launching our first consumer brand, Upbeat, a high protein dairy drink, which has gained a strong foothold of distribution and consumer traction in the UK. We also made significant capital investments in our Animal Nutrition business to support our silage inoculants following our 2012 purchase of Ecosyl. We recognise it is important to invest even during volatile market conditions such as those we are facing today. We are committed to continuing our investment programme to get closer to consumers, provide customers with the market-leading products they have come to expect from Volac, and make our operations ever-more efficient.”
Key metrics include:
Strong Sales Growth
Turnover rose 38% from £143m to £197m
Strong sales across all sectors driven by volume increases
Turnover boosted by Dutch joint venture, DVN becoming a subsidiary with effect from 4 October 2013
Lower Profit
Profit before tax decreased 21% from £23.2m to £18.3m
Ambitious investment programme contributed significantly to profit decline
Gross profit was 21%, slightly down on the 23% in FY 2012/13 mainly due to reduction in market prices for lactose
Increased Investment
Revenue Investments
Launched Upbeat consumer brand, aimed at bringing the unique benefits of whey protein to mainstream consumers by combining health, taste and convenience
Invested in new ERP system and related process and organisational developments in order to build an infrastructure supporting our fast growing business
Determined the feasibility of building a biomass plant adjacent to the Felinfach factory to provide secure, cost-effective, sustainable energy
Capital Investments
Capital investment rose by 46% versus previous year to underpin:
expansion of silage inoculant manufacturing to supply current and global markets
increased WPI (Whey Protein Isolate) and lactose capacity at our Felinfach site
Employees
Up from 290 in previous year to 382 (average)
UK employees up from 275 to 316 in the financial year to align structure with future growth, including an additional 11 in manufacturing
Incorporation of DVN joint venture staff account for 51 of new staff
Outlook
We foresee a strong demand for our products, which improve productivity and health in livestock and help people to lead healthier and more active lives. Demand remains particularly strong for whey protein.
