Graham's Profits from Increased Sales Despite Tough Trading

Scotland’s largest independent dairy company, Graham’s The Family Dairy, has announced its year-end results to 31 March 2011.

Sales increased by nearly 20% to £49,617,887 (2010: £41,387,790). Pre-tax profits declined to £604,025 (2010: £1,051,247).

Robert Graham, managing director of Graham’s and grandson of its founder, said: "Despite challenging trading conditions, including the rising cost of fat and fuel, the past 12 months has seen the Graham’s brand continue to record strong sales growth through new listings (David Sands, Co-op, Aldi), contracts (including NHS Scotland and Scottish Prison Service) and  acquisitions.

"Though a successful, award-winning family business, Graham’s has not been immune from cost pressures, including ongoing competitive pricing in the dairy category.

"However, sales growth suggests discerning customers continue to seek out the reassurance of buying high quality, great-tasting dairy products – precisely what is offered by our 72 year-old family dairy.

"In the face of wider economic uncertainty, over the past 12 months we have also remained firmly committed to product innovation and investment. This has included a £1.2 million investment in a new butter plant at Bridge of Allan.

"We’ve also absorbed the product development costs for the launch of Graham’s spreadable butter – a first on the UK market by a Scottish dairy."

The figures also take account of the fact the business acquired and invested in the Claymore business in Nairn while the dairy has also bought two Glasgow-based milk operations.

Robert Graham added: "As a family business, our passion for producing the highest quality of products continues to play a key role in our success.

"It is anticipated that market conditions over the next year will continue to be challenging, though Graham’s The Family Dairy is confident we are well placed to further consolidate and develop our presence in the sector."

More information:

Dairy industry news from Scotland.