Wiseman Dairies expects higher costs will make its earnings curdle this year

ROBERT Wiseman Dairies warned that increasing costs and delays in implementing price hikes will result in a major blow to profits this year.

The Scottish firm, which today released its preliminary results for the year to the end of March, said it expected operating profits in the current business year to be impacted by up to £8.5 million.

Wiseman announced adjusted operating profits of £38.4m in the year ending March 31, a rise of 10.1 per cent on the previous year.

During the year, the company saw its turnover increase by 19.3 per cent to £722m and reported sales volumes were up 4.1 per cent to a record 1.52 billion litres.

It also started operations at its new Bridgwater plant, commenced contracts with Booths and Aldi and increased business with the Co-op and Somerfield.

But the report from chairman Alan Wiseman added that continuing challenges from substantial cost pressures and reduced bulk cream prices will have an impact on this financial year.

He said: "We have faced an accumulation of cost and revenue pressures that will, disappointingly, impact our profitability in the current year."