Despite rapid sales growth for its healthy ‘the One’ range, rising costs and investment in its new Bridgwater dairy meant profits at Robert Wiseman Diaries fell by more than a third over the last six months.
Sales of ‘the One’ were up by 28% over the last six months, while extended-life milk sales were also up by more than 25% year-on-year.
However, the dairy giant today reported a fall in pre-tax profits of 36% to £11.6m, down from a mark of £18.2m for the equivalent period last year.
That fall was despite sales volumes increasing by 2.6% to more than 765 million litres, with total sales up 21% in the six months to 27 September to reach £396.3m.
The company cited rising packaging costs and funds ploughed into its £80m Bridgwater ‘super-dairy’, which opened at the end of August, as factors in the performance.
The group also warned that revenue generated by sales of bulk cream would be affected by falling prices in the second half of the year.
However, the company received a boost by extending its supply contract with Sainsbury’s for a further 12 months.
“With a robust balance sheet, excellent cash flow and volumes increasing at our new dairy in Bridgwater, we are in an excellent position to continue our track record of volume growth and to rebuild operating margins,” said chief executive Robert Wiseman.
“Despite very challenging conditions, which include a recent sharp decline in the value of cream and consequent impact on our profitability for the second half-year, the group is well positioned for the future.”
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