Robert Wiseman Dairies will rely on recovering rising costs from the major mults to meet performance expectations in the coming months.
In its latest trading update, issued this morning, the dairy giant said it was in talks with retail customers about recouping the higher milk prices paid to farmers to meet its raw milk requirements.
The news comes after Wiseman issued a profit warning in its trading update one year ago following severe retailer pressure as a result of the milk price war.
“Whilst we anticipate our results for the six months to 1 October will be in line with expectations, recovery of these costs is important to maintain margins in the second half of the year,” the company said.
Its financial results for the period would benefit from the £1m reduction in its fine payable to the Office of Fair Trading, Wiseman said.
The sum was cut to £3.2m by the competition watchdog following the conclusion of its probe into retail price-fixing in dairy between 2002 and 2003.
Wiseman to introduce ‘greener’ bottle caps (24 September 2011)
Wiseman to pay higher milk prices (27 August 2011)
Tesco chops milk prices to counter discounters (27 August 2011)