Revenues have jumped by £64m at Yeo Valley to surpass £400m on the back of growing demand for its range of natural yoghurts – but profits shrank as margins were squeezed by capacity constraints and higher prices for its farmers.
Pre-tax profits tumbled 12% lower to £7.2m in the 53 weeks to 1 June 2025 as large capital investments in its manufacturing operation only came on stream in early summer of last year, resulting in the group having to make additional volume in an inefficient way, according to the newly filed accounts.
CEO Rob Sexton told The Grocer the investments in automation and production capacity would now support future economies of scale and further growth.
Yeo Valley also took a hit from a 16.5% increase in the price it paid organic farmers during the financial year to ensure the supply base had a “good, stable milk price” and to make organic dairy attractive to new entrants.
The company also marked its first foray into M&A during the year with the acquisition of The Collective in March 2025.
Gross margins at the group slipped from 14.1% to 13.6% as a result, while the long-term target of reaching a 5% pre-tax profit margin slipped further away from 2.2% to 1.7%.
Yeo Valley said, in the accounts, overall growth was ahead of expectations, and it was confident in accelerating towards the margin target.
How Yeo Valley is diversifying from dairy and ‘democratising organic’
Turnover increased by 17.6% to £428.5m in 2024/25 as consumer demand for natural wholefood continued to boom, with Yeo Valley’s yoghurts performing particularly strongly. Most of this growth came from volumes rather than price, the business said.
“Overall, growth remains strong and our timely investments position us well to achieve our long-term goal of helping to make natural, healthy food, from the best farming, affordable and available to as many people as possible,” Sexton added.
Yeo Valley as diversified outside its core milk and yoghurt ranges in recent years, expanding its kefir SKUs, moving into granola and even launching its first-ever beef burger product.
The Collective also published new UK accounts at Companies House. Its revenues rose 16% to £31m in the 14 months to 1 June 2025, which were flat year on year when annualised. Profits jumped from £362k to £1.3m.
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