Profit down at Crediton Dairy despite higher turnover

Devon-based Crediton Dairy increased its turnover by 16.3% in 2021, to total £101.5m for the year.

This improved turnover was driven by increased sales volumes of its added-value dairy drinks range and also higher selling prices.

Despite a higher turnover, pre-tax profits were down marginally, totalling £9.6m for the 52 weeks ending 1 January 2022, compared with £9.8m in the previous year.

See also: Global Dairy Trade falls again

Increased overheads and raw milk prices were both factors behind this marginal decrease.

Crediton Dairy is supplied by 65 local producers and has a processing capacity of 200m litres.

Products are sold at 13,500 outlets across the UK by retailers including Tesco, Sainsbury’s, Morrisons and Co-op.

The processor is due to pay its producers a September milk price of 48p/litre for a standard liquid litre of 4% butterfat and 3.3% protein.

Capital investment of £2.7m was made during 2021 to scale up its utility services and also increase its capacity for added-value dairy drinks.

Additional capital investment of £4m is planned to further increase capacity at the dairy and reduce its carbon footprint during the next year.

Tim Smiddy, managing director at Crediton Dairy, said in the strategic report that on the back of strong dairy markets, Crediton Dairy will continue to invest in new capacity, capability and product development.

“The business is increasingly positive about the long-term prospects for the dairy sector and the role that a focused, added-value, West Country business can play within it,” he said.

Product range

Iced coffee drinks and long-life milk make up much of the processing capacity and the firm accounts for 27% of the iced coffee drinks market through its products, including its Artic Coffee brand.

Retail sales of its Artic Coffee brand increased by 88% during the financial year, to £20.3m.

The company also has a 26% market share of the British long-life milk market.