Dairy nutrition company Volac has published its financial results for the year ending 31 December 2016. Turnover for the calendar year was £212m, 7% higher than in 2015 (£197m) and profit after tax was unchanged at £9.4m.
James Neville, Volac Chief Executive summarises: “2016 was a solid year for the business in a challenging environment. Recent significant investment has left the business with high quality assets which will form the foundation of our future performance and growth. This includes our new biomass combined heat and power plant at our Felinfach site, which was officially opened by HRH Prince of Wales in July of 2017. During the coming months, we aim to play our part in preparing the UK dairy industry for a much more competitive environment due to the expected exposure to global competition post-Brexit.”
Key metrics include:
• Sales increased by 7% to £212m (2015: £197m), reflecting volume growth, weaker Sterling and rising dairy commodity prices
• Volac Wilmar Feed Ingredients introduced a range of dry feed fats under the ‘Mega Masterbrand’, complementing the Group’s established Megalac product
Profit and Cash Flow
• Profit after tax was unchanged at £9.4m
• Operating cash flow remained healthy at £15.5m. In 2015, operating cash flow was £21.4m, benefiting from one time working capital reductions
Increased Investment in Sustainable Growth
Volac continues to make substantial investments in sustainable growth. The company invested £36.8m in fixed assets during the year, an increase of £11.0m (+43%) over 2015. The major investments included:
• Completion of the company’s biomass combined heat and power plant, which started production of clean renewable energy during 2016
• Build of a new spray dryer at our Felinfach site in Wales, which also commenced production during 2016
• Stable average employee numbers at 393 (prior year: 390)
Volac remains confident in the medium-term future of its business and the dairy industry, as demonstrated by its significant investment programme. However, despite recent positive market movements, the prospect of Brexit has introduced significant uncertainty to the environment for the near term.
Source: VolacAuthor: Sossna