Freshways increase pre-tax profits in 2021

Dairy processor Freshways made a pre-tax profit of £634,000 for the year ending 1 January 2022.

This was a rise of 66% from £382,000 during the previous year.

Freshways is expected to remain profitable during the next 12 months, with the directors considering the impacts of inflation and general economic conditions on business sales, customers and suppliers.

See also: Freshways-Medina merger to complete by July

Parent company loses

However, parent company Nijjar Group Holdings made a pre-tax loss of £5.4m for the year ending 1 January 2022, considerably down on the pre-tax profit of £10.5m during the previous year.

Turnover grew by £28m (13%) to total £251m for the year, while cost of sales also grew during the period from £180m to £209m.

Nijjar Group Holdings focuses on processing milk and wholesale and retail sales of dairy products.

Director Balvinder Nijjar said: “The business is focusing on its strengths in core milk and cream production and distribution and has made significant investment in updating the site, plant and machinery and distribution network of motor vehicles and warehousing.”

Principal risks and uncertainties outlined in the accounts included credit, liquidity, commodity prices and other risks such as Covid-19.

 “The directors believe the group will move towards breakeven over the next 12 months and anticipate a recovery in the following years,” said Mr Nijjar.

Medina merger

The merger of milk processors Nijjar Group Holdings (Freshways) and former rival milk processor Medina Holdings was cleared by the Competition and Markets Authority in March this year and completed in July.

The joint operation will process more than 450m litres of milk a year through sites at Acton and Huddersfield.

A third site is also due to be created by reopening the Watson’s dairy site in Southampton.