Robert Wiseman Dairies has reported a sharp increase in turnover for the year to April, but it was not matched by a similar rise in operating profits.
Business acquired from Sainsbury’s and Tesco in last year’s retail reshuffle has boosted milk volumes to 1.38bn litres – around 10% of UK output.
Turnover grew 16% to £570m, but pre-tax profit rose 6% to £26.7m and the Scottish milk processor saw its share price slide a little.
Chairman Alan Wiseman said the results were good 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.”
Operating profit per litre came in at 2p/litre – slightly down on the year before, but a marked improvement on earlier in the year.
A retail price rise in February had helped to offset the rising cost of fuel, power and plastic, the company said.
* Wiseman has also been given the green light by planners in the south west to start construction on a new 200m litre dairy off Junction 24 of the M5, near Bridgwater.