Turnover at Castle Dairies soared nearly 30% in 2025, according to its latest accounts.
Filings on Companies House for the year to 31 October 2025 showed the premium butter business’s turnover increased 28.1% from £58.3m to £74.7m, thanks to elevated butter and cream prices and higher volume sales.
However, Castle Dairies’ cost of sales rose faster, up 33.2% from £49m to £65.3m, contributing to a 3.3% fall in gross profit margin.
However, with falling administrative expenses lending a hand, operating profit for the financial year reached £3.2m, representing an increase of 11.1%.
The directors said they were pleased with the company’s ability to “scale operations and deal with the volatility of the butter and cream markets while maintaining profitability”.
“The butter market remains subject to price volatility but the company’s established manufacturing capabilities and purchasing strategies, combined with a strong net asset base, provide a solid foundation for continued growth and operation resilience in the coming year,” the report continued.
Looking ahead, the company said it planned to make further investments in its manufacturing operations to drive efficiencies and margin enhancement.
The brand said it would also be investing in brand development and own-label innovation, alongside its research into recyclable alternatives for butter foils as part of its 2030 sustainability targets.
Castle Dairies consumed 5.4 million kilowatt hours of energy and reported total greenhouse gas emissions of 972 tonnes CO2e in 2025.
The company did not disclose comparative emissions figures for the previous year, but said it had “undertaken a series of efficiency-driven sustainability upgrades” including upgraded machinery and redesigned waste-management processes to ensure no waste is sent to landfill.
The business also purchased 100% renewable electricity to reduce emissions.
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