Co Tyrone milk and cream producer Strathroy Dairy has reported a sharp rise in revenue and profit.
The island’s oldest family-run dairy saw its revenues surge by 25% to £148.5 million in the year to July 31 2023.
That represented a £30m annual uplift in the income of the Omagh business, which has been producing milk and cream since 1850.
The period covered in the report reflects a period of sharp rises in the cost of food and drink such as milk.
In the UK, food and non-alcohol beverage inflation peaked at 19.2% in May 2023.
Costs also increased substantially at Strathroy Dairy last year, with the Omagh company’s accounts showing ‘cost of sales’ rising by £26.8m (24%) to £137m, while admin expenses increased by 47% to £3.6m (£1.1m).
Distribution costs increased marginally (2.8%) to £5.3m.
Despite those rising costs, Strathroy Dairy Limited reported a pre-tax profit of £1.4m in the year to July 2023, around £1m (218%) more than in 2022.
A £551,000 tax bill left the company with a bottom line profit of £889,384.
The business, run by brothers Patrick (58) and Ruairi (53) Cunningham, had 160 staff on its books at the end of July 2023.
Alongside its own branded products, Strathroy is a major supplier to retailers including Lidl, Aldi and the Musgrave group.
The latest accounts, published by Companies House, also reveal Strathroy’s business in the Republic recorded a turnover of £28.3m in the year to July 2023, a year-on-year increase of 28%.
In a brief summary of the 2022/23 trading period, the directors said they were satisfied with the performance, adding that they continue to monitor costs on an ongoing basis.
The directors identified inflationary cost pressures as a key issues for food producers.
“Producers continue to be exposed to pressures created by Brexit, rising energy costs, supply chain disruption and the war in Ukraine,” states the report.
Subsequent to the reporting period, Strathroy Dairy restructured the ownership of the business, with the significant control switched to Edmco Unlimited, a new company set up in Jersey in September 2023.
The new Jersey domiciled company remains under the ownership of the Cunningham family.
