First Milk has posted a 38% increase in turnover as the co-op's cheese business continues to grow amid 'volatile market conditions'.
First Milk has published its annual report for the year ending 31 March 2023, which outlines a year of continued profitable growth.
The report shows that turnover was up by 38% to £456m (2022: £331m), while operating profit was stable at £5.1m (2022: £5.1m).
Average member milk price increased year on year by 14.4ppl, with an additional £105m paid out to members in the year.
Rising milk prices increased working capital requirements, with the cheese stock value increasing by £32.5m, leading to net debt rising to £63.9m (2022: £43.4m).
Commenting on the results, Shelagh Hancock, First Milk chief executive, said the last year had been 'tumultuous, with a roller coaster ride on milk prices and energy costs'.
"Whilst these massively changing market dynamics have been challenging, the value we have in our secure contractual relationships meant that we were able to maximise the milk price paid to members as quickly as possible."
The report goes on to highlight the co-operative's new partnership with Arla Foods Ingredients to produce a specialist whey powder at Lake District Creamery.
And despite 'volatile market conditions', its cheese business has 'continued to grow' as major investment at the Haverfordwest Creamery was completed.
Ms Hancock added: "We have continued to progress our regenerative approach, receiving external acknowledgement of our progress through B Corp certification and the King’s Award for Sustainable Development.
"I am confident that we are on the right path and that growing recognition of our approach to regeneration will help to differentiate our offer and help us to deliver our vision of enriching life every day to secure the future.”
