Wiseman reports sales as satisfactory

Chairman of Robert Wiseman Dairies, Alan Wiseman, has reported satisfactory sales volumes at the company’s 2008 annual general meeting.

“We are pleased to report that sales volumes in the first three months of
the new financial year are satisfactory and some 2% ahead of the same period last year,” according to Wiseman.
Following a supplier base review by Netto, the dairy has recommenced supplies to 131 stores in England and Wales that had transferred to a competitor in October 2007. It also commenced supplies on a nationwide basis to the Martin McColl Group of convenience stores in June. Sales of ‘the One’, its 1% fat milk brand, and the Extended Shelf Life milk continue to make good progress in a very competitive marketplace.
Volumes at the Bridgwater dairy are building in line with expectations and anticipated savings in haulage costs from reaching capacity of the first phase will be realised in full from July 2008.
Wiseman adds: “We expressed concern at the time of our preliminary announcement in May about rising oil and packaging costs, and explained that increases in our selling prices were being implemented to recover these costs. It is clear there will be a need for the company to seek an increase in our selling prices from customers to recover the cost increases we are incurring.”
In May the company also highlighted that bulk cream revenues were a major cause for concern as they had dropped substantially since peaking in Autumn 2007. However, some recovery in bulk cream prices has taken place in May and June, and it is optimistic this can be maintained in the period ahead.
“The last few months have been amongst the most difficult we have ever faced as a business. However, we are confident that with a robust balance sheet, the most modern and efficient network of dairies and distribution centres in the UK, and the support of our customers, we can rebuild margins back to acceptable levels,” concludes Wiseman.