Cheesemaker Wyke Farms has shrugged off the difficulties faced by the dairy sector to post strong financial results for the year to 31 March.
The Somerset-based dairy company bounced back from pre-tax losses of more than £1.1m last year to post a £3.9m increase to £2.8m, according to accounts filed with Companies House.
Turnover also rose by 5.2% to £64.5m, while operating profit hit £3.6m (compared with a £204,000 loss last year).
Wyke’s improved financials were boosted by a strong performance by its renewable energy division and milk ingredients business, which both showed improved margins, said its annual report. Its export business also continued to grow, with Wyke products now available in 160 countries around the globe.
“These sales are becoming a very important part of our business and over the coming year we will be investing in our export infrastructure, systems and people to allow our export business to continue to grow strongly,” the report added.
Wyke said it expected UK milk supplies to reduce during the next year, and for the UK cheese trading position to return to profit for the first time in more than two years.
It comes as value sales for Wyke Farms cheese rose by 28.4% to £20.1m [Grocer Top Products Survey/Nielsen 52 w/e 8 October].
The increase lifted Wyke Farms from the 14th to 10th largest cheese brand in the UK, and comes despite a 2.8% fall in value sales for the whole category.
Commenting in last week’s edition of The Grocer, Wyke Farms MD Rich Clothier said the surge in sales was down to gains in Waitrose, Sainsbury’s and Tesco.
With retailers driving down own-label prices to compete with the discounters, brands now had to “prove there’s differential in the product”, Clothier added. “The brands that support themselves can ride it out.”
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