Müller Takes £65M Loss on Milk & More Sale Amid Strong Financial Year
Financial Turnaround and Growth
The company’s operating profit rebounded from a £5.9 million loss in 2022 to a £13.8 million profit in 2023, driven by record-high farmgate milk prices and new supply contracts for its Müller Milk & Ingredients division. Müller’s Yogurt & Desserts subsidiary also performed well, with growth in revenue, operating profit, and margins compared to the previous year.
“Growth in 2023 shows that shoppers are not willing to compromise on the brands and the products they love, despite ongoing cost-of-living challenges,” the company stated in its annual report.
Strategic Shifts and One-Off Losses
The sale of Milk & More, which operated under the Moreco Group, followed a strategic review that found its direct-to-consumer model misaligned with Müller’s core objectives. The sale resulted in a £57.5 million loss on the disposal of investments, coupled with a £17.1 million impairment cost.
These one-off charges contributed to a total financial loss of £65.4 million for the year, compared to a £6.3 million loss in 2022. However, Müller emphasized that excluding the one-off losses, the company was profitable in 2023.
“The overall operating loss for 2023 does not accurately reflect the profitable performance of both Müller Milk & Ingredients and Müller Yogurt & Desserts,” a company spokesman said.
Continued Investment and Strategic Growth
Müller highlighted its commitment to future growth, noting significant investments in marketing and product development, including the launch of Müller Corner Originals and a multimillion-pound masterbrand TV campaign.
The acquisition of Yew Tree Dairy in June 2023 further strengthened Müller’s position, enabling the company to expand its dairy ingredients portfolio and solidify its role as a major player in the British dairy industry.
Milk & More, previously marketed as a premium service, has pivoted to a value-driven model under its new owner, Freshways.
Outlook for the Future
With a well-invested infrastructure, strong partnerships with farmers, and long-term retail collaborations, Müller is poised to continue its profitable growth trajectory and further support the British dairy sector.
