First Milk has seen profits fall but a rise in turnover following a challenging year, the co-operative has said in its annual report.
Operating profit of £5.1 million was impacted year-on-year by rapidly rising costs due to inflation, the processor said.
But group turnover was up 11% to £331m, and net asset value had increased by 28% (£10.6m) to £48.7m.
Capital investment doubled to £14.9m, which First Milk said had delivered additional processing capacity and improved efficiency.
New long-term contracts were secured with two of the co-op's largest customers, Ornua and Nestlé. First Milk also acquired 5% of share capital of Agricarbon.
Shelagh Hancock, chief executive, said the last twelve months had seen considerable change within First Milk.
"Amid the uncertainty of Covid, rising prices and war in Europe it is testament to the hard work of the First Milk team that we were able to deliver our capital projects on time and on budget."
She added: “We have continued to deliver against our strategic objectives, improving total returns to our members throughout the period, improving milk price by 5.8ppl, equivalent to almost £50m, and increasing net assets by 28 per cent during the year.
“There is no shying away from the realities of the global challenges we all face. However, I am confident that First Milk is well positioned and will continue to deliver for our members.
"We have great customer relationships; a growing export business; efficient, well invested production sites, a market-leading sustainability programme and, of course, some of the best dairy farmers in the world."
