This represented a year-on-year operating profit increase of 68%, while turnover rose 20% from £124.4m in 2021/22 to £149.6m in 2022/23. After tax profit for the financial year came in at £8.1m, while total shareholders’ funds now sit at £41.7m.
These results come at the end of a difficult period for food manufacturers given the challenges associated with the cost of living crisis and input cost inflation.
Rich Clothier, managing director at Wyke Farms, credited the business' growing export channel as a key reason for its continued success stating that “we continue to sell our cheddar and butter in more regions across the world”.
He also pointed to Wyke Farms' renewable energy production, which not only helps power its operations but also sold into the national power and gas grid.
“The renewable energy business has performed particularly well,” explained Clothier.
“Our green gas production hit record levels and after our own usage, we sold over 60% surplus green gas back to the national grid at record prices.”
Reflecting on such positive results in challenging conditions, Clothier said that the past year had been “defined by inflation once again” which put “significant pressure” on the business.
“We have had to seek cheese and butter price increases from all customers to cover milk price increases, labour cost rises and packaging increases,” he added.
Clothier also cited increased labour costs and rising interest rates as an obstacle that Wyke would have to confront in the “very challenging” year ahead.
“Cheese in our maturing stacks has been made at a high cost, leading to high financing costs, and the spike in gas prices seen in these accounts will not be repeated,” he continued.
“We expect to see lower profits going forwards and we will work with our customers and suppliers to ensure that sustainable supplies of all products are maintained. We will be asking customers for longer term commitments so that we can be confident to commit to laying down stocks of aged cheese knowing that it is for defined customer needs.”