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Robert Wiseman Dairies Profits Rise 6%

Posted on: Monday, 15 May 2006, 21:03 CDT

UK-based Robert Wiseman Dairies has reported a 6% rise in profits before tax to GBP26.7 million for fiscal 2006 and announced that it is building its sixth dairy at Bridgewater.

Milk sales for the company were up 14.2% to GBP1.38 billion, which the company said was due to greater stability in terms of supply to the major retailers.

The dairy firm won contracts with UK supermarket giants Tesco and J Sainsbury at the beginning of the year, offsetting the loss of a contract with Wm Morrison. Contracts for this year have also been secured with convenience chain One Stop and grocers Somerfield.

Increased efficiencies at the dairies and a price rise helped margins in the second half of the year, raising operating profits by 9.6% to GBP27.5 million. Operating profit per liter was GBP0.02, an improvement from the first half of the year although still low compared to other years.

Alan Wiseman, chairman, said: "Against a backdrop of high oil costs, we remain optimistic about the outlook for our business, and look to a period of further stability within the sector and to maintaining the recovery in our operating margins in the period ahead."

Robert Wiseman said that the new dairy will be based in the south west of England and will have the capacity to produce 200 million liters per annum at a cost of GBP46 million. The dairy has received planning permission and is expected to be completed in the autumn.

Source: Datamonitor

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