DairyCo

Wiseman Dairies and Dairy Crest release annual results

Published 20 May 11

Robert Wiseman Dairies (RWD) has released its annual financial results for the 2010/11 period.  As expected, the results show decrease in operating profits, of 30%, which came despite a 3.5% increase in total turnover.  The impact of intense competition in the retail market for liquid milk, leading to reduced selling prices, coupled with increasing oil and resin related costs, has resulted in the sharp decline in profits for the company.  The pre-tax profit margin has fallen to 3.7% from the 5.6% reported in the previous year.

Dairy Crest's business has also been impacted by increased costs and competition, although profits have been protected by the spread of its business.  Total turnover fell by £25.2m (1.5%) during the financial year, although operating profits increased by 3.2%.  There were mixed results from its three main segments with the spreads division reporting a small increase in turnover (2.8%) and a marginal drop in operating profits of £0.7m (1.3%); the dairies division showed increased turnover, although profits fell by 22.3% as costs increased while selling prices were pushed down.  Protecting company performance was the cheese division which improved its profit position by £11.1m over the previous year despite a 14.2% drop in revenues.  Profit margins for the overall business remained unchanged from the previous year at 4.8%.