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Sales up but price hikes on the way at Wiseman
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03/07/2008
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At its annual meeting today, dairy group Robert Wiseman told shareholders that sales were up in the first three months of its new financial year. It had won back 131 customers from a rival, but it now faced a further need to increase prices.
Chairman, Alan Wiseman told the 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.
“Following a supplier base review by Netto, we have recommenced supplies to 131 stores in England and Wales that had transferred to a competitor in October 2007. We also commenced supplies on a nationwide basis to the Martin McColl Group of convenience stores in June. Sales of ‘the One’, our 1% fat milk brand, and our Extended Shelf Life milk continue to make good progress in a very competitive marketplace.
“We are encouraged by customer reaction to our Bridgwater dairy and volumes at this new state-of-the-art facility are building in line with our expectations. Likewise, anticipated savings in haulage costs from reaching capacity of the first phase will be realised in full from July 2008.”
Diesel and HDPE costs had continued to rise and this was being compounded by substantial increases in electricity and gas 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,” Wiseman went on.
He added that he remained confident that improving cream revenues and anticipated cost recovery from customers, would deliver results for the year in line with expectations.
“In summing up, I can say that the last few months have been amongst the most difficult we have ever faced as a business,” he concluded.
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Author
Ken Hurst
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