North Wales-based dairy co-op and cheesemaker South Caernarfon Creameries has shrugged off sector-wide challenges to post record turnover and strong profit growth.
Sales for the year to 31 March rose by 17% to £71.5m, while year-on-year operating profit jumped by 20.6% to £4.1m, it announced.
Performance had been boosted by a pandemic-driven rise in UK retail sales “with strong consumption in the home and B2B sales performing better than expected”, said MD Alan Wyn Jones.
The business also ploughed £3.8m back into ‘Project Dragon’ – a five-year £20m plan to boost production at its Chwilog dairy near Pwllheli in Gwynedd.
Project Dragon also includes new facilities for milk reception, additional cheese production and packing with work continuing to improve environmental and energy performance.
“Good progress has been achieved in what has and continues to be a very challenging period for everyone as well as the unimaginable circumstances in Ukraine adding to supply chain issues caused by the post-pandemic reopening of the economy,” Wyn Jones said.
“Despite that, the business has performed strongly, increasing turnover in volume and value and with profits again up on the previous year at 5.8%, above our five-year average of 4.9%,” he added.
“Demand has continued to recover in the smaller wholesale markets and in foodservices though not yet to pre-pandemic levels but we have made better than expected profits while providing our members with one of the most competitive milk prices in Wales.”
And despite the dairy sector’s “ongoing challenges”, the business had made “good progress”, he noted.
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