Cheese exporter buoyed by US performance
An exporter of British cheese and dairy products has been buoyed by record US sales during a year when wider revenue and profitability “returned to more normal levels” post-pandemic. The company is also “optimistic” about the future of the industry.
Somerdale International exports to more than 50 countries worldwide and has enjoyed growth in markets such as China and the Far East, Europe, the Caribbean, and Australia, as well as in emerging markets including the Middle East and North Africa and South East Asia.
During the year to 31 March 2022, turnover decreased slightly to £44.3m from £45.8m but US sales reached a record $29m, up some 11 per cent year-on-year.
Total pre-tax profits were down from £1.78m to £1.56m.
Elsewhere, Somerdale noted that the financial strength of the business “continued to improve” with total net assets increasing to £3m from £2.8m.
In May 2022, Somerdale also acquired a site for the development of a major warehouse facility. This will provide additional capacity to support the group’s sales growth for the next decade and beyond.
Reflecting on the year, the company noted that trading conditions were mixed for most of the year, as many of the market impacts relating to the Covid-19 pandemic unwound.
In particular, in some markets, the reversal of Covid-19 factors led to a reduction in sales, as consumers returned to “normal buying habits”. This return led to a sales decline, in sterling terms, of -3 per cent for the year.
However, on a two-year basis, the sales growth was +5 per cent, in line with the long term aims of the business.
During the second half of the year, Somerdale 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, the cost of distribution surged, as the “rebound in global economic demand…
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