Uelzena reports market challenges with annual results, yet reveals further expansion plans

The German-headquartered Uelzena dairy ingredients group has released its latest annual figures, noting turnover of €929, down slightly on its previous year, with sales down €122 million in relation to a record high achieved in 2022, reports Neill Barston.

With more than 70 years of experience in the sector, the business has supplied products for a wide range of industries, including confectionery and snacks markets, namely with powdered and milk ranges destined for the chocolate market.

While sales figures were reduced for the year, the company observed that its net profits were ‘up significantly’ compared against the previous year.

Furthermore, as the company reported, its raw milk deliveries increased by over 4 %. As it noted, it was not possible to achieve the average milk payout for the record year of 2022 although thanks to the positive second half of the year, an average payout of above 40 euro cents was achieved. Raw milk was purchased regionally at a rate of 96 %, thereby helping to increase the added value created in the area surrounding the site locations.

As the company added, in terms of sales volumes, the primary product groups achieved slight growth of about 2,000 tonnes. Cheese and milk powder recorded rises, whereas the volumes for condensed milk, delicatessen and speciality products dropped slightly. Sales of milk fats remained virtually unchanged.

In addition, the company enthused that a major investment focuses for the year was to increase production capacity, as demonstrated by the expansion of capacity for the raw milk intake at Bismark cheese dairy and the construction of a sugar silo in Ratzeburg.

Moreover, it also launched a new operating system at the Warmsen site helped simplify and optimise operations across the group. Following the successful completion of test runs in 2023, the new spray-drying tower is now being used for regular production.

To counter the high dependency on the raw material markets, the Uelzena Group focused on sustainable sourcing and, in some cases, adjustments to recipes, to optimise the raw material availability. In the packaging sector, recyclable films were used as sustainable and innovative alternatives.

Training investment
Another of its reported successes was an internal project “Wir: Gemeinsam-Transparent” (transparent together) is all about promoting the corporate culture.

As the company added, this has been tailored training for management staff and employees is a priority and will help support respectful communication. Flat hierarchies and an enhanced feeling of togetherness promote a work environment that enables everyone to get involved and progress.

Overall, the corporate culture in the Uelzena Group embodies trust, appreciation and a sense of responsibility, which is reflected in the satisfaction of its employees and the long-term stability of the company. This is evident from the average length of employment of 12.2 years among the 845 employees and 51 trainees on the reporting day of 31 December 2023.

In its outlook, the company stated that efficiency increases will continue to be a priority and promoted within the group, along with expanding the capacity at several sites, and a focus on energy topics, as well as making gains on the overall sustainability of its operations.

 

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