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Dairy figures hit

Graham’s profits slump in challenging year

Robert Graham

Robert Graham: challenging year

Profits at Graham’s The Family Dairy slumped by nearly a third as it faced intense market pressure and invested in the business.

Revenues for the year to the end of March came in 4.4% higher on the previous year at £114 million, but pre-tax profits fell by 32% to £1.55m. Underlying earnings also fell, down 9% to £4.2m.

Capital investment of £5.6m, including £2.7m spent on its Glenfield dairy in Fife, proved a “significant drag” on performance.

The company said it has pulled back on capital investment in the current year as it “works through” the uncertainty created by Covid-19. Spending will be cut to just a quarter of that during the 12 months to March.

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However, it plans to ramp up investment next year at sites in Glenfield, Nairn and in its Bridge of Allan headquarters.

The company has submitted plans to build a bioenergy plant at Glenfield that would use whey from cheese production to provide heat and power for the Cowdenbeath facility.

The zero carbon system would be a first for the dairy industry in Scotland, but it has drawn objections from more than 300 nearby residents concerned about noise and odours.

Managing director Robert Graham said: “It has been a challenging year… however we have seen sustained growth across our categories with exciting new product launches.”



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