Graham’s The Family Dairy has shrugged off inflationary pressures across the wider dairy category to register a big increase in profits, its latest financial results have shown.
The Scottish supplier saw an operating loss of £212k in its previous accounting period swing to an operating profit of £4.5m in the year to 31 March 2024, according to its annual report and accounts, posted with Companies House.
Graham’s attributed its turnaround to an increase in sales volumes, across both its conventional dairy lines and its newer high-protein product range, including Protein 25 pouches, yoghurt pots and drinks, Skyr Icelandic-style yoghurts, and Scotland’s first Greek yoghurt pouch.
And while inflation continued to trouble the sector in areas such as raw material, packaging, energy and staffing costs, its cost of sales fell due to industry-wide falls in farmgate milk prices, by 20.6% to £119.2m. This contributed to flat turnover, which rose by £96k to £153.1m.
Pre-tax profit for the company was £2.8m, while its profit for the year stood at £1.9m.
The family-run supplier also continued with a major capital investment plan, ploughing £5m into the business this year, on top of £8.4m last year to modernise production plants and meet rising demand “in the most sustainable and responsible way possible”.
“These results are positive, with Graham’s The Family Dairy operating at a profit with strong sales growth, despite continued challenging conditions,” said MD Robert Graham.
“As dairy farmers ourselves, who continue to milk our own cows, we understand the pressures of continued high energy, staffing and raw material costs. However, our continued programme of investment in new product development and our manufacturing sites has meant profits remained steady,” he added.
Protein and skyr products overtook sales of conventional milk for the first time this year, Graham explained, but he stressed the brand was not losing sight of its traditional dairy heartland, with Gold Top milk still continuing to perform well.
“As a family business and the number one Scottish food brand, we are proud of the work done by our whole team, including our farming partners, to continue producing and delivering great-tasting dairy products in a sustainable and responsible way across the UK and Ireland,” the report laid out.
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