RECORD sales in America have helped Wellington-based Somerdale International, a leading exporter of high-quality British cheese and dairy products, return to more normal levels of profitability post-Covid.
The company, which operates from the Westpark business park at Chelston, has published accounts for the year-ended March 31 showing many of the market impacts relating to the pandemic unwinding.
The return to more typical levels of demand led to a sales decline, in sterling terms, of minus three per cent for the year.
However, on a two-year basis there was a five per cent sales growth, in line with the long-term aims of the business.
At the same time, Somerdale’s North American business achieved record sales of $29 million in the key US market with growth of 11 per cent, further cementing its position as the leading supplier of British cheese to the United States.
Also this year, Somerdale acquired a site for the development of a major new state-of-the-art warehouse facility which will provide additional capacity to support sales growth for the next decade and beyond.
Somerdale finance director Trevor Debenham said: “Trading remains strong with full year sales growth expected to be generated from most markets.
“Rising inflation has reduced margins, but profitability is on target for the year.
“We remain optimistic about the long-term prospects for the export of high quality British dairy products.”
During the second half of the year, the business experienced availability issues affecting product, freight, and labour which in turn led to input costs rising significantly through the end of 2021 and into 2022.
In particular, its distribution costs surged as the rebound in global economic demand post the pandemic led to a shortage in freight container availability and, as a consequence, major price increases.
Record US sales have boosted cheese exporter Somerdale. ( )
While in the last quarter, the business started to see an uplift in the cost of cheese, and the…
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