Graham’s the Family Dairy has reported full year results to March 2018 with turnover up £4.1m to £104.1m representing a 4% rise (2017 – £100.5m).
Maintaining the overall balance between supply and demand in raw milk continues to provide both opportunities and challenges. Profit before tax and exceptional items was £1.3m (2017, £1.3m) however due to an exceptional cost item, the reported pre-tax profit was £0.4m. The Group were managing the Airthrey Kerse planning application which was refused by Scottish Minsters in June 2018. The Group have taken a prudent view to write these costs off this year, despite an appeal which has been made in respect of this decision to the Court of Session and the outcome is awaited.
There was continued investment in plant and machinery, equipment and motor vehicles representing a capex investment of £2m as they continue to expand their business and maintain an up to date fleet to allow efficient distribution of our products.
New Product Development continues to be a key part of Graham’s growth strategy and early 2018 saw the launch of Graham’s Skyr, a cultured dairy product native to Iceland, which has achieved multiple Scottish and UK listings, as well as respected awards for taste and texture at the 2018 Royal Highland Show.
Robert Graham, MD at Graham’s the Family Dairy, said: “Graham’s the Family Dairy is a family business at heart and our core values of farming, family, quality, heritage and provenance always ring true in whatever we do.
“We continue to grow our business partnerships with major retailers and now over half the Scottish population buy Graham’s products. Going forward, we will constantly innovate to expand our award-winning product range both within the UK and beyond.
“Despite the challenging backdrop of balancing supply, demand of raw milk prices and the exceptional item of £0.86m, we have made significant progress throughout the year in relation to key elements of our strategy. We are well positioned to take advantage of upcoming opportunities in the market place whilst at the same time looking to improve efficiency and profitability.
Whilst we are extremely disappointed with the final decision to dismiss a planning appeal that, if successful, would have resulted in significant investment in a new dairy facility, we will continue to endeavour to innovate and deliver great Scottish dairy products for the benefit of our customers, employees and our farming partners.”