Crediton Dairy reported lower profits in difficult markets

Crediton Dairy recorded a reduction in profit for the year to 3 January, as conditions in the dairy market affected returns. Profit declined by £3.4m, from £10.4m to £7m. The Devon-based business owns the Arctic Coffee and Pro Mlk brands.

The company said milk prices remained elevated until late in the financial year, when they adjusted to weaker market conditions. It also reported that cream values weakened after supply growth exceeded demand. Crediton said the year brought increasing milk volumes, supported by favourable spring conditions for feed.

Greater milk availability across Europe reduced returns from cream and lowered the price paid for milk at farm level. Crediton nevertheless retained an average standard milk price of 43.6 pence per litre. The company did not provide a separate figure for the change in cream prices.

Turnover increased by £6.3m to £137.6m during the period. Crediton linked the rise to a change in the composition of sales to retailers in the United Kingdom, together with larger volumes of bulk milk and cream. Net assets grew by £3.8m, reaching £58m in 2025.

Managing director Tim Smiddy said demand remained strong for the company’s expanding range of functional and flavoured dairy drinks. He said Crediton was continuing to spend on processing capacity and operational capabilities, and described the business as an independent British producer focused on added-value dairy products.

Crediton has invested £44.9m since its management buyout in 2013. Capital spending in 2025 amounted to a further £3.2m, including projects to expand processing and filling capacity. The company is committing another £5.4m to increase capacity and capabilities and to upgrade site facilities. It also plans additional capital expenditure in 2027 as part of its stated strategy to operate as an efficient and flexible added-value dairy-drinks business.