Castle Dairies Bounces Back: Reports Pre-Tax Profit
Source: The DairyNews
Welsh butter manufacturer, Castle Dairies, has successfully rebounded from previous losses to announce a pre-tax profit in its latest financial period.
Established in 1966 and headquartered in Caerphilly, Castle Dairies specializes in butter manufacturing, packing, and the production of spreadable butter. Its product range is distributed across various supermarkets, including Asda, Morrisons, Waitrose, and Lidl, as well as through Welsh wholesaler Castell Howell.
For the fiscal year ending on October 31, 2023, the company reported a pre-tax profit of £1.9 million, a significant improvement from the £1.4 million loss in the preceding period. Turnover saw a modest increase to £54.6 million compared to £54 million in the previous year.
The average staff count rose from 106 to 111 over the same period.
According to the directors' report, turnover in value terms experienced a 1.1% growth year-on-year. Despite reductions in dairy commodity prices leading to lower sales value per tonne, the company saw an overall increase in sales volume compared to 2022, primarily driven by sales to major retail customers.
The report noted, "Improvements in operational performance played a vital role in the profitability turnaround compared to 2022, despite facing the challenges of significantly higher heat and power costs."
For the fiscal year ending on October 31, 2023, the company reported a pre-tax profit of £1.9 million, a significant improvement from the £1.4 million loss in the preceding period. Turnover saw a modest increase to £54.6 million compared to £54 million in the previous year.
The average staff count rose from 106 to 111 over the same period.
According to the directors' report, turnover in value terms experienced a 1.1% growth year-on-year. Despite reductions in dairy commodity prices leading to lower sales value per tonne, the company saw an overall increase in sales volume compared to 2022, primarily driven by sales to major retail customers.
The report noted, "Improvements in operational performance played a vital role in the profitability turnaround compared to 2022, despite facing the challenges of significantly higher heat and power costs."
