Increased sales help dairy post 3p a litre profit

12 November 1999




Increased sales help dairy post 3p a litre profit

A PROFIT of 3p a litre has been recorded by Robert Wiseman Dairies in the six months to Oct 2. Year on year sales of milk increased by almost 25% to 360m litres and operating profit rose by 18.7% to £11.1m.

Turnover at £140m was up almost 18% and the interim dividend to shareholders at 1.5p per share is up by 0.1p on the same period last year.

The profit was swollen by almost £1m following a reduction in delivery vehicle depreciation. But the acquisition of the Aberdeen Milk Company at the end of May cost the company £500,000 before it closed the Twin Spires creamery two months later. The option to buy the remaining 20% of shares in Gilmours Dairy, Kilmarnock, for £500,000, has been exercised.

Raw milk

Wisemans average selling price dropped by 5.4% from the same time last year, reflecting falling raw milk prices. But increased sales compensated for the price drop and the report shows there are now more sales to supermarkets in England and Wales than in Scotland.

Plans have been approved for the Wiseman millennium dairy at Droitwich near Birmingham where production is expected to begin in the spring of 2001.

The first phase will cost £30m and create 300 jobs. Ongoing capital investment has led to an increase in borrowings of more than £8m. &#42


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