The company reported pre-tax profits of £220,854 for the 12 months to 30 April 2010, down £488,577 on last year's profits of £709,431. Turnover rose by £9.4m during the same period, to £69.4m.
Bradbury & Son had to make an unexpected and substantial investment in cheese-wrapping systems and processes as a result of winning a major speciality cheese-packing contract with Waitrose in December 2009, said sales and marketing director Chris Chisnall.
That, together with fluctuations in the exchange rate, had been responsible for the fall in profits.
The facilities upgrade would "bring more efficiency and a greater opportunity to grow in future", added Chisnall.