UK milk group Robert Wiseman has warned the company’s future growth depends on generating profits from its new site in Somerset despite posting record results today (14 May).
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The Scotland-based company saw operating profit soar 30% to GBP35.7m (US$70.7m) during the 12 months to the end of March, thanks to rising sales and an increase revenue per litre of liquid milk.
Turnover rose 6.5% to GBP605.3m; the revenue per litre of liquid milk sold inched up 41.5p per litre, compared to 41.3p a litre the previous year.
However, the company’s chairman, Alan Wiseman, issued a note of caution amid the robust results. Wiseman said: “The business has gradually rebuilt its operating margin over the last couple of years in what is an extremely challenging environment. Our ambition remains to maintain that recovery over the next few years.”
Wiseman added: “The group’s future prospects will be heavily influenced by the success in
profitably utilising the new capacity created at Bridgwater. We are confident that we can continue our steady progress in the period ahead.”
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By GlobalDataThe company’s dairy in Bridgwater, Somerset, is expected to be up and running by December. Robert Wiseman has decided to ramp up the site’s capacity to 500m litres, rather than 300m as was originally planned.
Robert Wiseman produces around 60% of the organic milk sold by Tesco and the company’s “strong like-for-like growth” from its major customers has been a key factor in the decision to build the Bridgwater dairy.
Meanwhile, the company said it is “frustrated” with delays to finding resolutions to cases it is involved in with the UK’s Office of Fair Trading.
Robert Wiseman said there is “little to report” on either case, one of which involves allegations that a group of Scottish dairies fixed milk prices.
