Muller suffers £55 million loss

The dairy firm counted the cost of a major restructuring of the business – but today insisted that the business was healthy and the future bright.

The figures were released as the firm is embroiled in a dispute with farmers over the price of milk. Muller's Market Drayton factory was blockaded by 500 farmers on Monday night, who were demanding it raised the amount it pays for a wholesale pint of milk.

The company, which employs around 1,000 people in Shropshire, achieved an operating profit of £33.2m in the period to December 31 on the back of revenue of £684.9m, and says it is pleased with its underlying performance.

In a report published alongside the new company's accounts, Muller said trading in the milk market has been "challenging" with profit margins continuing to be under pressure. It said: "The focus is to continually work to improve margins going forward and identify cost reduction activities."

The company has cut the price it pays for milk to 27.1p per litre, leading to protests from dairy farmers.

Muller says today's financial figures relate to the restructuring of the business. Muller's UK operation is based in Market Drayton, where it employs hundreds of people. It also has an operation in Telford after it took over Nom's operation at Donington Wood, and a chilled desserts facility in Minsterley.

Today's figures excluded trading in the first half of the year, as the group only brought together its three main companies under a single banner – Muller UK and Ireland Group – on July 1.

The firm said: "Brands such as Mullerlight and Cadbury's Desserts have both performed well and the business continues to focus on developing great tasting brands and flavours, supported by continued investment in research and development and advertising."

The figures also show that the company employed 5,565 people last year.

Processing and distribution of milk accounted for £494.2m of the company's revenue, while the sale of dairy products brought in £190.7m.