Company Poised To Repeat Record 2022 Result
Westland Milk Products has been named a finalist in the Deloitte Top 200 Awards for the Most Improved Performance NZ Business award.
With the company poised to repeat its record financial year performance off 2022, Westland is one of three finalists, with the winner to be announced at a gala dinner on December 6.
Westland CEO Richard Wyeth said reaching the finals of the prestigious award recognised the significant achievements of Westland’s staff and suppliers in staging a remarkable company-wide turnaround.
“Great things are happening at Westland and this is all due to the hard work, dedication and teamwork of our staff and the commitment to quality and professionalism day in and day from our suppliers,’’ Mr Wyeth said.
“Across the company, we are extremely grateful for everyone’s efforts but it’s also important that we maintain our focus to ensure we continue to play a major role in the economy and the community of the West Coast.’’
In 2022, Westland Milk Products staged a significant financial turnaround, posting record sales and a $NZ120million rebound in profit compared to the previous year.
“The 2022 result definitely provided us with a lot of incentive and now we’re focused on maintaining that momentum as much as possible,’’ Mr Wyeth said.
Despite the challenges of 2023, including a sluggish global economy and volatile trading conditions, we’re expecting Westland will deliver another billion-dollar revenue financial year and a similar profit to 2022.
“This expected result is even more meaningful for us. It means we’ve improved the business to the point that we have a healthy, growing business, year on year,’’ Mr Wyeth said.
Revenue for 2022 for Westland increased 27 per cent year-on-year to $NZ1.04 billion, enabling profit of $NZ39 million, or 69c per kilo of milk solids, a $NZ120m turnaround over 2021.
This was on the back of record milk prices in 2022, hitting $NZ9.40 per kilogram of milk solids (KgMS) during the year.
Westland continues to pay farmers a 10c premium above the forecast Fonterra KgMS price, contributing $NZ535 million into the West Coast and Canterbury economies in 2022 through milk payments to farmers in 2022.
The result was also the first time in the company’s 85-year history that Westland surpassed the $1 billion dollar revenue mark.
Mr Wyeth said major investments in people and infrastructure by parent company Yili had played a major role in the turnaround as well as the company’s focus on a high-value product strategy.