Robert Wiseman Dairies, which supplies milk to UK’s supermarkets including Tesco and Sainsbury’s is planning to pass on its rising costs to the customers. The company’s spending on gas; diesel, electricity and packaging has increased substantially. Chairman, Alan Wiseman informed that the company intends to recover its rising costs by increasing the selling price of milk.
The dairy industry is holding round of price negotiations in autumn. After its announcement of price hike, supermarkets are also likely to recover higher prices from their shoppers. Andrew Saunders, an analyst with Panmure Gordon, confirmed that the company is focussed on the price hike and will make an announcement in due course.
Mr Wiseman explains that past few months have been the most difficult period of their business due to substantial increase in fuel and energy costs. He is however confident of regaining the company’s margins back to acceptable levels and hopes to deliver year end results as per the forecast. He points out an increase of 2 per cent in sales over same period last year.
According to Mr Wiseman, the company has won back the contract to supply 131 Netto discount supermarkets, and also commenced supplies to Martin McColl convenience stores.
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