Wiseman raises prices to compensate for rising costs

Sep 26 2008 By Greig Cameron

Dairy firm says trading and turnover for first six months in line with forecasts

ROBERT Wiseman Dairies has notified customers it is raising prices across the board to offset rising costs.

Billy Keane, finance director, confirmed trading and turnover for the six months to September 27 were still in line with forecasts.

He said: "In May, we highlighted a number of factors that would impact our results for the year. These included weakening bulk cream prices, a delay in implementing a price increase and rising oil related costs. 

"That outlook was reaffirmed in our AGM Statement in July, when it was highlighted that these costs had continued to rise and had been compounded by substantial increases in utility costs. As a result, it was stated that a further price increase would be required to recover these cost increases.

"This month we have notified our customers of an across the board increase in selling prices to recoup these higher costs and to allow a further rise in milk price to our raw milk suppliers. 

"We are confident this increase will be achieved and a significant improvement in the second half performance is anticipated, as higher selling prices compensate for the increased costs that impacted the first half performance.  In overall terms, we believe our results for the year will still be in line with our expectations."

The company said its new Bridgwater dairy was performing as planning and was processing more than four million litres per week.

The increased capacity had helped to expand sales volumes with increased contracts with Netto and the Martin McColl Group. 

A contract to service Co-operative Retail Trading Group stores in the South East of England commences on September 28.

Keane added: "Given our confidence in the future volume growth of the business, we have been searching for over twelve months for a suitable new distribution depot site. 

"We are pleased to confirm that, following the granting of planning permission on 19 September 2008, we have conditionally agreed to buy a nine acre site in Amesbury, Wiltshire at a total land cost of £4.5 million. 

"The Company will now finalise the costs and timescales of construction prior to committing to building the depot.  This depot will help us deliver more efficiently to the considerable business we are building in the South East of England."