Turnover of the 12 months to 31 March 2020 grew by 5.55% to £38m from £36m in the previous year – while operating profit for the business grew 878% to £1.88m. The significant growth was largely due to lower production costs, improved efficiencies and ongoing restructure savings, claimed the company.
Rodda’s reported the business had become cash generative for the year, which has been generated from operating activities of £4.2m (2019: £421k).
“Strong cash generation from the trading and settlement of an outstanding claim gave a good start to the year 2020/21, allowing financial headroom for the remainder of the year,” the report added.
“This excellent result has been achieved whilst continuing to pay one of the higher UK non-aligned milk prices. In 2019/20, Rodda’s average standard litre price was 29.1p/litre with the average actual price paid being 30.82p/litre.”
The business reduced its reliance on bank and asset finance over the course of the past financial year, from £4.1m to £1.7m.
Rodda’s claimed it had cemented its position as a market leader in the clotted cream category, with international sales a key focus going forward.
The manufacturer has planned continued investment to grow brand reach through its existing consumer base and by appealing to a younger generation of consumer.
Established in 1890, Rodda’s has been producing Cornish clotted cream from its creamery in Scorrier, Redruth for 130 years. The manufacturer has since extended its range of products to include fudge, double cream, farmhouse Cornish butter and Cornish milk.
Its products are exported across the globe, with customers as far afield as Hong Kong, Dubai and Sweden.
The company took home the coveted Dairy Manufacturer of the Year award at the 2011 Food Manufacture Excellence Awards (FMEAs), beating firms such as Arla Foods UK and Dairy Crest. The judges praised Rodda’s process innovation and control. One said: “It is a very good example of product development and investment in frozen clotted cream.”
Entries are free and are now open for the 2021 FMEAs. Winners will be announced at a gala dinner on 11 February 2021 at London's Hilton Bankside, which will also be the 20th year the industry Oscars have been held.
Meanwhile, biscuit giant Pladis also posted a set of positive results in its annual report for the year ended 31 December 2019, with significant annual growth in international profits.