Market Drayton-based Muller's sales pass £2 billion
Dairy giant Muller raked in more than £2 billion of sales last year despite admitting to challenging times in the milk market.
The Market Drayton-based yoghurt maker saw revenue increase from £1.9 billion to in 2016 to £2.1 billion last year.
But the acquisition of the Dairy Crest dairies business also led to falling operating profits.
In a trading update, it said losses grew from £114.4 million to £134.1 million.
The company also said it had continued to look for cost-cutting measures.
In a report accompanying the newly-published accounts, the company said: "Trading in the liquid milk market has continued to be challenging due to intense competition from both national and local milk processors.
"The business' focus has remained on identifying cost reduction activities within our supply chain and delivering these in a professional manner, whilst exploiting synergies following the acquisition of the Dairy Crest dairies division.
"In the year ended December 31 2017 the business was focused on reducing waste within its operations, improving operational efficiency and continued to focus on the delivery profile of customers in respect of both timings and frequency of deliveries.
"All of these activities are intended to reduce cost within the business to allow us to make positive margins in an intensely competitive sector of the dairy industry.
"Following the acquisition of the Dairy Crest dairies division, one off costs have been incurred integrating operations, processes and systems of the newly acquired business.
"Focus will remain on our existing retail milk contracts, existing brands and continued investment in advertising and promotion. We will continue to seek cost reductions and operational efficiency across the business."
The losses are actually something of a red herring, as they include the effect of amortisation on the business – which involves the devaluation of assets on the balance sheet.
Operating profits excluding the effect of this fell from £51 million to £37.9 million.
The number of staff on the company's books also increased significantly over the year.
The average number of employees within the business grew from 7,817 in 2016 to 8,199 last year, with the cost in wages, pensions and taxes also spiralling, from £303.4 million to £314.6 million.
The dairy giant has operations in Shropshire at Market Drayton, Minsterley and Telford.
