Robert Wiseman Dairies is expecting to deliver profits ahead of its previous expectations for the year ending 3 April 2010.
Sales volumes and turnover are above the company’s forecast.
The company highlighted in its Interim Management Statement on 28 January 2010 that volumes sold were running slightly ahead of management expectations.
This trend has continued, with strong trading from customers resulting in overall milk sales volumes being up over 11% for the year on a like-for-like 52-week basis.
This will be a new record for the group and significant and sustained capital investment in advanced dairy and distribution capacity has again proved to be important in allowing the company to accommodate this growth.
The value of bulk cream, a commodity by-product of the company’s production process, has stabilised after significant falls from its peak in October 2009.
Robert Wiseman highlighted that the surge in bulk cream prices in the quarter to December 2009 had improved margins and this one-off benefit, while welcome, is unlikely to repeat itself in the forthcoming year.
Oil related costs have continued to rise in the second half-year after easing during early 2009. In addition, diesel costs will be impacted by the announced duty increases next year, which kick off with a one pence per litre rise from 1 April.
Increased capacity of 375 million litres per annum at our state-of-the-art Bridgwater dairy came on stream prior to Christmas 2009, slightly ahead of schedule and on budget.
The planned final phase of capital expenditure at Bridgwater, taking capacity to 500 million litres, is on track for completion by October 2010 at a cost of