Robert Wiseman Dairies yesterday said it expected stiff competition to hurt its operating profits for the second half and next year, sending the shares down by nearly a third.
The company that procures, processes and delivers milk to customers across the UK forecast second-half operating profit falling by around £7m and by £16m in 2012.
“Some of the assets that Dairy Farmers of Britain (DFOB) used to own are now coming back into operation. We are seeing more capacity and more dairy companies chasing volume,” a spokesman said. Along with an increase in the number of small and mid-sized local rivals after the demise of co-operative DFOB last year, aggressive supermarket pricing tactics are also affecting Robert Wiseman’s business. Asda began discounting milk and market leader Tesco followed.
City A.M. Reporter