The total loss for the year was up 17% to £134m, the fifth consecutive year of net loss reported by the company since accounts began on Companies House in 2013.
Müller cited the acquisition of Dairy Crest last year as the main reason behind its drop in profit before amortisation, down to £37.9m from £51m in the previous year. However, this acquisition was also the key driver for sales, which were up 6% to £2.1bn.
Challenging market
In its report, Müller said that trading in the liquid milk market had continued to be challenging due to intense competition from both national and local milk processors.
It added: “The business’ focus has remained on identifying cost reduction activities with our supply chain and delivering these in a professional manner, while exploiting synergies following the acquisition of the Dairy Crest dairies division.
“In the year ended 31 December 2017 the business was focused on reducing waste within its operations, improving operational efficiency and [having a] continued focus on the delivery profile of customers in respect of both the timings and frequency of deliveries.”
Employee numbers grew
The past year also saw employee numbers grow for the company, with the average number of workers within the business up 4% to 8,199 in 2017. The cost of wages, pensions and taxes grew 3.7% to £314.6m.
Müller’s 2018 results will see the impact of consultations on its foodservice delivery arm in April and its distribution depot in Carlisle, which have put more than 300 jobs at risk.
Meanwhile, last week, Müller Group appointed Patrick Müller as permanent managing director (MD) of its Milk & Ingredients business.
Müller – who is also chief executive of the group’s doorstep delivery service Milk & More – stepped up to the role following a stint as interim MD, following the departure of Andrew McInnes.
