Home Somerset business Excellent year for Somerset cheese company | South West Business News

Excellent year for Somerset cheese company | South West Business News

4
0



A Somerset-based UK cheese and dairy exporter has been bolstered by continued growth as revenues surpass the £ 45million mark.

For the fiscal year ended March 31, 2021, Somerdale International increased sales by 9% from £ 42 million to £ 45.8 million.

Its sales in the United States hit a record $ 25.9 million as the company enjoyed continued success in the North American market.

Meanwhile, overall pre-tax profits fell from £ 605,000 to £ 1.78 million.

The company’s financial strength also continued to improve with net assets increasing to £ 2.8million and current assets reaching over £ 2million.

Somerdale continued to show strong financial, business and operational performance during the year despite unprecedented challenges from Covid-19, the UK’s exit from the European Union and the impact of tariffs from retaliation imposed on British cheese entering the US market.

The company also continued to invest in strengthening its operational capacities, growing its presence in core and emerging markets and developing its product portfolio.

Somerdale noted that trading conditions were good for most of the year, with the pandemic having only “limited negative impact.”

In most markets, the business has benefited from increased demand as foreclosure restrictions spawned a renaissance in home cooking and entertaining.

In the last quarter of the year, Somerdale also acquired the mixed cheese business of Abergavenny Fine Foods (AFF). This included the transfer to Somerdale of AFF’s blend cheese processing assets, brands and associated trademarks.

In the current fiscal year, the company “continues to perform well despite significant increases in freight and packaging costs, limited availability of shipping containers and labor shortages.”

CFO Trevor Debenham said: “In fiscal 2020/21, the company continued to show strong performance. Both sales and profitability increased, aided in large part by record sales in the United States, our largest and most important market.

“Looking ahead, directors expect strong business performance in the current year and beyond. market presence, product range and marketing activity.

He added: “The removal from March 2021 of retaliatory tariffs on UK cheese entering the US market is also a further positive development as it improves the competitiveness of UK products and should support further sales growth. “


Source link