In the strategic report submitted alongside the dairy company’s annual report, R.B Graham, the firm’s director said that the “exceptional inflationary pressures” Grahams faced during the year, not only on raw materials but also on indirect costs have resulted in an “extremely challenging year.”

The firm’s directors said that the firm works closely with its customers to “manage the impact of increasing costs on our selling price. We work in a very competitive marketplace with the price of milk and cream continually under pressure.”

The £1.3m loss before tax stands in contrast to the £1.6 million profit the firm posted the year before. In 2023, Graham’s fell into the red despite an increase in sales - of around 20%0 in 2023, from £127m to £153m.

The average monthly number of employees fell to 642 in the latest year, from 672 in the preceding period.

However, the firm stressed that it has “made strong progress throughout the year in relation to the growth of turnover. Turnover reached £117.1m, compared to £96.7m in 2022, its gross margin decreased slightly from 19.7% in 2022, to 15.0%m while its operating costs dropped from £1.6m to £0.9m and net assets stood at £3.4m - a reduction from £4.4m in 2022.

Graham’s added that throughout the year it has invested significantly in its manufacturing site and innovation plans to ensure it will continue to meet demand for its products in a sustainable and responsible way.