Barbados Dairy Industries Limited reports US$2.26M milk loss in FY 2024

Barbados Dairy Industries, a leading manufacturer of dairy products, has reported a US$2.26 million loss for the financial year ended December 31, 2024, citing a significant decline in raw milk production as a key factor.

According to the company’s financial statement, sales for the full year totalled US$52.29 million, a notable decrease from the US$61.25 million recorded in 2023.

The downturn in revenue contributed to an operating loss from operations before undernoted items of US$3.560 million, marking a sharp contrast to the US$213,000 operating profit posted in the previous year.

The company’s loss before taxation stood at US$3.38 million, compared to a profit of US$373,000 in 2023. Additionally, the net loss for the year amounted to US$2.26 million, a substantial shift from the US$357,000 recorded the previous year. The total comprehensive loss for the period was reported at US$2.50 million.

The financial strain was reflected in total shareholders’ equity, which declined from US$37.431 million at the end of 2023 to US$34.922 million as of December 31, 2024. Company executives attributed the decrease primarily to the net comprehensive loss recorded during the year.

Cash flow analysis revealed a net cash usage of US$1.582 million in investing activities and US$322,000 in financing activities. This resulted in a net decrease in cash of US$1.04 million, bringing the company’s year-end cash balance to US$5.135 million, down from US$6.18 million at the beginning of the year.

The company stated that the net losses for the period were primarily attributed to global supply chain challenges associated with milk powder availability and reduced production of raw milk from the local market due to operational and environmental factors, which affect productivity at the farm level.

Despite these challenges, the company remains focused on implementing strategic measures to improve sales performance and operational efficiency. Industry stakeholders are closely monitoring developments, hoping for a recovery in raw milk production and financial stability in the coming year.

Commonly known as Pine Hill Dairy (PHD), Barbados Dairy Industries is the only dairy processing plant in Barbados. Established in 1966, it was originally a joint venture between Northern Dairies of England, the New Zealand Dairy Board, a private enterprise in Barbados, and the Government of Barbados.

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