CREDITON Dairy Limited, the leading independent dairy drinks producer and one of the town’s biggest employers, says the business continues to perform well at a financial, commercial and operational level.

It made the announcement after publishing its report and accounts for the 53 week period ending January 4, 2025.

While noting that the reporting period was a challenging and rapidly changing one for the dairy industry, it says that the year started with subdued dairy markets and this fed through to low farmgate prices, which combined with a poor spring weatherwise, resulted in low milk volumes.

As the year progressed, as a result of strengthening commodity markets, particularly cream which hit record highs in the Autumn and concerns over milk volumes, farmgate prices increased which in turn stimulated growth in milk volumes.

Crediton Dairy increased the milk price paid to its farmers by 7ppl over the reporting period.

This was in line with the business’s ongoing commitment to supporting and growing its milk pool and recognition that it is important to pay a competitive price which allows farms to be profitable and re-invest for the long term.

Against this backdrop, the business performed well financially with turnover of £131.3 million, £20 million higher the prior year (2023: £111.3 million).

This reflected the growth in sales of extended shelf life products and higher cream prices.

Largely as a result of producing a higher volume and better mix of products, the business generated a profit for the financial period of £10.4 million (2023: £9 million).

The results reflect the continuing strong sales performance and improved mix of the growing range of its own label flavoured and functional milks and branded dairy drinks made at the Dairy.

The latter includes Arctic Coffee, now the second biggest iced coffee brand sold in British supermarkets growing ahead of the iced coffee category both in both volume and value terms; the fast-growing ProMlk range which is now the No.2 best-selling protein milkshake brand in British supermarkets in value and No1 in volume; and Biocol the cholesterol reducing white milk brand which is now one of the fastest growing speciality white milk brands on the market.

During the year the business made a further £5.7 million of capital investment to upgrade and expand its processing facilities. This included improving its pasteurisation, processing and filling capacity.

Having already invested some £41.7 million in developing the Dairy since the Management Buy Out in 2013, in the current year the business is investing a further £5.7 million.

This includes boosting further its processing capacity and capabilities, together with undertaking a major upgrade of its wastewater treatment plant.

Tim Smiddy, Crediton Dairy Managing Director said: “In the light of increasing demand for our own label flavoured and functional milks and branded dairy drinks supplied to UK retailers, the company is continuing to invest in new capacity and capability, site services and new product development.

“As the UK’s leading independent dairy drinks producer, we remain positive about the long-term prospects for the dairy sector and the role that a highly focused, added value, Devon based business can play within it.”