RECORD sales in America have helped Wellington-based Somerdale International, a leading exporter of high-quality British cheese and dairy products, return to more normal levels of profitability post-Covid.

The company, which operates from the Westpark business park at Chelston, has published accounts for the year-ended March 31 showing many of the market impacts relating to the pandemic unwinding.

The return to more typical levels of demand led to a sales decline, in sterling terms, of minus three per cent for the year.

However, on a two-year basis there was a five per cent sales growth, in line with the long-term aims of the business.

At the same time, Somerdale’s North American business achieved record sales of $29 million in the key US market with growth of 11 per cent, further cementing its position as the leading supplier of British cheese to the United States.

Also this year, Somerdale acquired a site for the development of a major new state-of-the-art warehouse facility which will provide additional capacity to support sales growth for the next decade and beyond.

Somerdale finance director Trevor Debenham said: “Trading remains strong with full year sales growth expected to be generated from most markets.

“Rising inflation has reduced margins, but profitability is on target for the year.

“We remain optimistic about the long-term prospects for the export of high quality British dairy products.”

During the second half of the year, the business experienced availability issues affecting product, freight, and labour which in turn led to input costs rising significantly through the end of 2021 and into 2022.

In particular, its distribution costs surged as the rebound in global economic demand post the pandemic led to a shortage in freight container availability and, as a consequence, major price increases.

While in the last quarter, the business started to see an uplift in the cost of cheese, and the milk used to make it, as the Ukraine war started to have a major impact on farm-input costs, particularly in relation to feed, fertiliser, and fuel.

Highlights for the year included:

Turnover decreased slightly to £44.3 million (2021: £45.8 million).

Somerdale’s US sales reached a record $29 million ($26 million), up 11% year on year, reinforcing its position as the leading supplier of British cheese to the North American market.

Profit before tax decreased to £1.56 million (2021: £1.78 million).

The financial strength of the business continued to improve with total net assets increasing further to £3.0 million (2021: £2.8 million).

In May, 2022, Somerdale acquired a site for the development of a major new state-of-the-art warehouse facility.

Somerdale International is now in its 33nd year of operation and today exports British cheese to more than 50 countries worldwide.It is a leading exporter of cheese to the USA with shipments leaving for New York every week.

The company has also grown in key markets such as China and the Far East, Europe, the Caribbean, and Australia, and in emerging markets including the Middle East, North Africa, and South East Asia.

Somerdale has established supply partnerships with traditional, family-run producers which make cheese of the highest quality, enables the firm to offer a comprehensive range of traditional, quintessentially British, cheeses.

It also develops new cheeses, brands, and packaging formats to meet the diverse requirements of the global marketplace.

For more information about Somerdale visit the company website http://somerdale.com.