December 31, 2012

Graham sees 30.5% drop in profits

Graham's, which describes itself as Scotland's largest independent dairy firm, has witnessed a severe drop in profits in its last financial year amid "competitive pricing" by retailers and cost pressures.

The family-owned dairy company revealed that its pre-tax profits had fallen by 30.5% in the year to March 31 compared to 12 months ago.

Graham's had suffered a 42.5% fall in pre-tax profits in the year to March 2011.

However, Graham's achieved a rise in sales in the year to March 2012, compared to 12 months.

It highlighted growth in sales of its spreadable butter range.

Still, major supermarket groups have slashed milk prices amid the UK economic downturn as part of their battle with rivals to draw in hard-pressed consumers. There are also frequent promotions on butter.

Graham's counts the major supermarket groups among its customer base, with a spokesman for the Bridge of Allan, Stirlingshire-based company noting that it supplies all major multiple retailers except Marks & Spencer.