Norco Co-operative Limited achieved a record earnings before interest, tax, depreciation and amortisation (EBITDA) of $8.1 million for the 2008/09 financial year, up 2.4 percent from the previous year’s result of $7.9 million.

The net profit of $1.1 million was also an improvement on the 2007/08 result of $1.0 million.

Sales revenue also increased to $344.1 million so it was a solid year of trading in a volatile economic environment, chairman Greg McNamara told shareholders at the Co-operative’s annual general meeting held this month.

"Our strategy implemented in 2007 to combine the dairy manufacturing operations under the banner of Norco Foods, whereby many key functions have been centralised, has seen a dramatic improvement in its EBITDA," he said.

"The EBITDA result for the overall Norco Foods Business Unit for 2008/09 was up 19.5pc on the previous year.

"The EBITDA for the Ice Cream Business Unit at Lismore for 2008/09 was a significant 321pc improvement over the 2007/08 result.

"Norco is now the contract manufacturer of choice for many of Australia’s leading retailers and brands."

Mr McNamara said that total milk intake from members was up slightly for 2008/09 and Norco paid 56.7 cents per litre in 2008/09 for three-year contracted milk.

Mr McNamara also advised that it was a strategy of the board to ensure that the Co-operative continues to deliver competitive milk prices into the future.

Mr McNamara also acknowledged the contribution of the chief executive officer, Brett Kelly in reducing operational costs and for restructuring the business to adapt and overcome challenges such as the global financial crisis since his appointment in September 2008.