Dairygold’s UK business delivered a healthy 56% increase in operating profit to £3.6m (€4.2m) for the 2022 financial year.

This was driven by turnover increasing by over 50% to £127.5m (€148.2m), compared with £84.4m (€98.1m) for the 2021 financial year, and this reflects the record price of dairy commodities in 2022.

Operating profit as a percentage of turnover in 2022 was 2.8%, similar to the 2.7% reported for 2021, meaning that the increased profits reflect increased turnover as opposed to higher value-added sales or cost savings.

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Net assets of the business at the year’s end were £15.6m (€18.1m), up 15% on the 2021 value of £13.6m (€15.8m).

Focus of the business

Dairygold’s UK business is a relatively small business, processing and supplying UK cheese and cheese products to the manufacturing, wholesale and retail trades.

The company completed the £2m (€2.3m) capital investment programme in its cheese formatting facility at the Crewe factory, with further investment planned. The business is also exploring potential acquisition opportunities to further develop and grow the business.

Dairygold UK is a wholly-owned subsidiary of Dairygold Holdings UK Limited, whose parent company is Dairygold Co-op.