Annual pre-tax profits have more than doubled at Somerset yoghurt and dairy products manufacturer Yeo Valley, despite strong competition and growing commodity prices.
But the Blagdon-based company's profits still trail those recorded three years ago and its directors warned the latest results were "not acceptable or sustainable for the long term".
Yeo Valley Group Ltd posted a pre-tax profit of £3.6m for the year to 27 May 2012, up from £1.6m in 2011, but the figure was still £2.2m below the level achieved in 2010. However, turnover increased by 13 per cent from £201.7m to £228.7m in 2012.
In the directors' report, the company said: "While this result is an improvement year-on-year, the directors of the group continue to be of the opinion that this level of result is not acceptable or sustainable for the long term.
"The result for the year reflects the continuing impact of competition within the sector, general operating cost inflation and commodity price rises in core ingredients and packaging.
"The directors remain focused on the need for these costs to be mitigated through improved productivity and efficiency across all areas of the business together with the need to recover improved cost prices from the group's customers."
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