Dairy firm’s sweet and sour results
Turnoverupbutchallengespushprofitsdown
Bridge of Allan-based dairy firm Graham’s reported a 20 per cent increase in turnover in the 12 months to the end of March.
However, profit before tax fell from £1.43 million in 2015-16 to £1.3m in the following 12 months.
Graham’s blamed challenges facing the dairy industry for the dip in profits.
However, they insist that the future remains bright, with new product launches and continued overseas expansion planned for the future.
Turnover rose from £83.6m in 2015-16 to £100.5m in 2016-17.
According to the company, the jump reflects the full year impact of its acquisition in 2015 of the Glenfield Dairy site in Fife which has helped the company expand into the production of cottage cheese, quark and sour cream.
The company, which has also reported a £1.4m investment in new plant and machinery, say that its new facility depot built in Kintore, strengthens its commitment to customers and suppliers in Aberdeenshire and Moray.
Regarding new products, the company says that 2017 saw the launch of a quarkbased fruit flavoured snack, with has achieved multiple Scottish, UK and international listings, as well as winning respected awards.
The dairy also picked up numerous stars for its butter, milk and quark products at the 2017 Great Taste Awards.
Managing director Robert Graham explained: “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 and demand of raw milk prices, we have made significant progress throughout the year in relation to key elements of our strategy.”
Graham’s is currently working with developers Mactaggart and Mickel Homes on the controversial proposal to build a 600home development on greenbelt land at the rear of their Bridge of Allan plant.
The development, the company says, would allow it to built a £20m “national dairy centre” at Hill o’Drip opposite Stirling Agricultural Centre.
Graham’s say that the scheme would generate 450 jobs, adding to the 630 already employed.
However, the homes plan attracted 450 objections and was turned down by Stirling Council last year.
The company has since appealed the decision to the Scottish Government which has yet to make a determination.
However, the proposal was dealt a blow last month when a bid by Graham’s to have the homes site included in the Local Development Plan was given the thumbs down by Ministers. Mr Graham has said that they remain committed to the development, but conceded that it required the support of the Scottish Government if it was to proceed.
He explained: “The (proposed) centre will focus heavily on research and development and innovation and represents the single biggest investment in Scotland’s dairy sector in 30 years.
“It will be home to scientists, researchers and food technicians and help put us, and Scotland, at the forefront of change.”