Crediton Dairy has reported an increase to its turnover in its latest accounts published at Companies House.
The drinks producer saw turnover increase by £20m to £131.3m in the year to 4 January 2025, reflecting a growth in sales of extended shelf-life products and higher cream prices, Crediton said.
Meanwhile, profit increased to £10.4m, largely as a result of producing a higher volume and a better mix of products.
The business said this came against a “challenging and rapidly changing” period for the dairy industry, starting with subdued dairy markets in the UK and low farmgate prices, which resulted in low milk volumes.
Over the year, a strengthening of the commodity markets boosted farmgate prices and milk volumes, which meant Crediton Dairy was able to increase the milk price paid to its farmers by 7ppl over the reporting period. This is in line with the business’s ongoing commitment to supporting and growing its milk pool.
“In the light of increasing demand for our own label flavoured and functional milks and branded dairy drinks supplied to UK retailers, the company is continuing to invest in new capacity and capability, site services and new product development,” said Tim Smiddy, Crediton Dairy managing director. “As the UK’s leading independent dairy drinks producer, we remain positive about the long-term prospects for the dairy sector and the role that a highly focused, added value, Devon-based business can play within it.”
During the year, the business made a further £5.7m of capital investment to upgrade and expand its processing facilities including improving its pasteurisation, processing and filling capacity.
This ongoing capital investment would support the delivery of its strategy of being a highly efficient and flexible added value dairy drinks business, it said.
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