Crediton Dairy has reported a reduction in profits against the backdrop of a difficult year for the dairy industry.
The Arctic Coffee and Pro Mlk brand owner saw profits fall from £10.4m to £7m in the year to 3 January.
The business said this was largely reflective of the fact that “milk prices did not fall to reflect the weaker dairy markets until late in the year” and strong cream prices were not sustained as supply moved ahead of market demand.
It added that 2025 was a year of “ever-growing milk volumes” thanks to “optimal spring conditions” for feed. Increases in milk availability across Europe pushed down cream returns and the farmgate milk price. However, Crediton maintained an average standard price of 43.6ppl.
Despite this, turnover remained high, up by £6.3m in the period to £137.6m due to an improvement in the product mix of sales to UK retailers, alongside higher volumes of bulk milk and cream.
Net assets also increased by £3.8m to £58m in 2025.
“In the light of the ongoing strong demand for our growing portfolio of functional and flavoured dairy drinks we are continuing to invest in the dairy’s capacity and capabilities,” said MD Tim Smiddy. “This reflects the fact that we remain very positive about the long-term outlook for the dairy sector and the role that Crediton Dairy is playing as an independent, highly focused, added value, British business within it.”
Crediton Dairy has invested £44.9m since the management buyout in 2013 and in 2025 invested a further £3.2m to increase the processing and filling capacity among other projects.
The business is investing a further £5.4m to increase further the capacity and capability of the dairy and upgrade the site’s facilities.
It is also planning more capital investment in 2027 in line with it’s strategy of being “a highly efficient and flexible added value dairy drinks business”.
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