Wiseman reports first half results

Sales volume have been enhanced at Robert Wiseman Dairies of the UK for the first half of 2011, with 100 per cent of The Co-operative Group own label milk supplied from August 2011 and servicing all of Tesco organic milk from October 2011. The company has also established a Joint Venture with A2 Corporation Limited to develop a range of a2 Milk products for launch in summer 2012. The completion of a new processing line at Droitwich doubles capacity for Extended Shelf Life milk for the company, and there have been improved farmer prices and increased farmer recruitment. Additionally, savings have been realized from site closures.

That being said, while turnover increased by 1.1% to £457.7 million (EUR534.2m, 2010 : £452.8 million), operating profits declined by 40.6% to £12.5 million (2010: £21.0 million). Profit before tax was 41.6% lower at £11.8 million (2010: £20.2 million), or 47.7% lower at £10.6 million, once adjusted for non-recurring items.

Profit after tax reduced 17.7% to £12.5 million (2010: £15.1 million). After adjusting operating profits to exclude the non-recurring items and eliminating the highlighted tax credits, profit after tax was £7.3 million, which was 48.2% lower than the equivalent prior year period.

Robert Wiseman, executive chairman, comments: “We continue to build on our reputation as Britain’s fresh milk professionals. Our network of dairies and depots allows the best quality fresh liquid milk products to be produced and delivered in the most efficient and sustainable manner possible. As well as closely managing our costs, we have invested in projects to assist the future growth of the business and the re-building of margins.”

The company says: “We are pleased to report results in line with expectations for the six months to 1 October 2011, a period which has seen the group work hard to achieve a robust performance in the face of high input costs and a challenging environment for customers and consumers.

“We continue to build on our reputation as Britain’s fresh milk professionals. Our network of dairies and depots allows the best quality fresh milk products to be produced and delivered in the most efficient and sustainable manner possible. As well as closely managing our costs, we have invested in projects to assist the future growth of the business and the re-building of our margins.”