In its results today, Robert Wiseman Dairies Plc (LON:RWD) said sales volumes were up 9.1% to a record 1.77 billion litres in the year to 3rd April, while turnover increased by 4.5% to £886.2m, up from £847.7m in the previous year. The group said it was partnering with Tesco to double processing capacity available for filtered milk to assist growth in their Tesco Pure product range. Wiseman also confirmed a three year extension to Sainsbury's contract to October 2013. 116 million litres per annum of additional business with The Co-operative Group commenced in June 2009 and a further volume gain of 30 million litres per annum will become effective from August 2010. The Bridgwater dairy production capacity was increased to 375 million litres per annum equivalent on time and on budget. Work has commenced at Bridgwater to increase capacity to 500 million litres per annum at cost of £10m, with completion expected in November 2010.
Operating profit was up by 43.1% to £50.3m (2009 : £35.1m) and adjusted operating profit up by 37.8% to £48.4m (2009 : £35.1m). Adjusted operating profit per litre was 2.74ppl (2009 : 2.17ppl). Earnings per share were up by 445.5% to 50.13p (2009 : 9.19p). Adjusted earnings per share up by 48.3% to 47.22p (2009 : 31.84p). Full year dividend was raised 20% to 18p per share (2009 : 15.00p). Cash generated from operations was up 23.6% at £83.1m (2009 : £67.2m) and net debt was reduced to £21.1m (2009 : £25.8m).
Alan Wiseman, Chairman, commented:
'I am delighted to report a very satisfactory set of results for the Group with volumes, turnover and profits all at record levels.
'It is very pleasing to have the facilities and capacity in place to continue growth towards our near-term target of selling over 2 billion litres of milk a year.
'We have made steady progress improving our underlying operating margins in recent years and are committed to continuing this trend.'
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