Westland Milk Products have once again solidified itself as a milk product pioneer. For the second year in a row, they delivered a substantial profit for 2023.
The announcement was a testament to Westland's financial success, revealing that the company had not just met but surpassed its after-tax profit target for 2023, reaching an impressive NZD 55.9 million, more than doubling its initial goal of NZD 20 million.
The 2023 profit is above 2022's NZD 38.9 million record-breaking result.
Richard Wyeth, CEO of Westland, stated that the company would maintain its push towards long-term profitability by continuing to divert more milk solids into higher-value products in 2024.
Westland has recently reaffirmed its commitment to its farmers, pledging to pay them a 10c premium above Gonterra's Farm Gate Milk Price for the 2024-25 and 2025-26 seasons.
This commitment demonstrates the company's dedication to its farming community.
"We're proud of this result, but we know we still have plenty of room for improvement," said Wyeth.
"We're tracking well to deliver on our five-year commitment to build sustainable growth yearly. A sustainable financial base means we can continue to offer farmers very competitive terms for their milk."
Wyeth was very pleased with the NZD 1.065 billion revenue made last year, especially given the fall in global dairy prices. He remains optimistic about Westland's future and credits some success to dairy company Yili.
"The advantage we have, of course, is the backing of one of the world's largest dairy companies in Yili," said Wyeth.
"Yili's support has enabled us to invest heavily in infrastructure to maximise revenue from high-margin products. But our ability to remain competitive on milk prices must rely on our ability to stand alone on financial performance."
A Yili-supported Hokitika plant has just received an NZD 70 million investment, expected to reduce reliance on traditional high-margin revenue sources, such as baby formula.
Wyeth said an NZD 40 million investment in a new butter plant at Hokitika in 2022 had allowed Westland to expand strongly in the US market.
Westgold butter is now stocked in more than 3000 grocery retail outlets in the US, including Walmart stores.
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