Dairy figures hit
Graham’s profits slump in challenging year
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.
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.”