For the second consecutive year, Glanbia Cheese, Europe’s largest supplier of mozzarella cheese, has recorded a strong set of financial results.

While profits to the end of December 2018 were down on the previous year, the margins achieved are still well ahead of competitors.

The company, which employs 377 people, operates from two production sites –one based in Magheralin and the other in Llangefni, Wales. Glanbia Cheese is a joint venture between Glanbia Plc and US-based Leprino Foods.

The latest set of accounts show that operating profit for 2018 stood at £27.73m, down from the £37.29m recorded in 2017. Profit after tax came to £22.52m, which was nearly £8m less than in 2017 (£30.25m), but still well ahead of the figures recorded in 2013-2016, when it generally ranged between £5.8m and £8.1m. In their report to the accounts, the company directors describe the 2018 performance as “satisfactory”, noting that the reduced profit was due to lower sales prices, with year-on-year milk prices being maintained, resulting in reduced margins. Despite higher sales volumes, a fall in market returns saw turnover down from £278.59m to £275.31m.

However, net profit margin before tax still stood at a very healthy 9.9%, which is well ahead of its main competitors in NI, Dale Farm and Lakeland Dairies, who recently reported margins between 2% and 3%.

Looking to 2019, the Glanbia Cheese directors warn that they expect the “trading environment to be challenging”, but note that the company is well positioned to again deliver satisfactory performance.

In 2018, Glanbia Cheese announced plans to add a third production site, with a €130m investment in Portlaoise.

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