Graham’s The Family Dairy reports challenges and growth
Graham’s The Family Dairy has announced its full year results, with notable commercial pressure due to increased market competitiveness and continued business investment.
Based on year-on-year sales, Graham’s reports a 4.4% rise in turnover from last year, to £114 million (€123.6m) this year. However, profit before tax at £1.55m was lower by 32%. The dairy also reports a 9% reduction in 2020 EBITDA performance of £4.2m compared to the previous year.
The fall in profit this year had two drivers. The first being the incredibly competitive nature of the dairy market, and this year particularly so. The second, the family business had another year of capital investment totalling £5.6m, with another £2.7m invested at its Glenfield site, resulting in a significant drag on performance.
In a year that seen consumer shifts in shopping trends in an ever-changing landscape, the priority for the family dairy is to improve the bottom line performance to a position that is sustainable for the business and Graham’s 100 farming partners, the company says.
Robert Graham, managing director at Graham’s the Family Dairy, says, “It has been a challenging year. However we have seen sustained growth across our categories with exciting new product launches, such as our milk in glass bottles, kefir, skyr pouches and flavour extensions to our Goodness ice cream range.”
In the current year to March 2021 Graham’s will have pulled back capital investment to 25% of March 2020 as the business works through the uncertainty around Covid-19. However, Graham’s plans significant investment across its sites in Cowdenbeath, Nairn and Bridge of Allan, from March 2021.