The Devon-based firm saw profits fall from £10.4 million to £7 million in the year ending 3 January 2026, while turnover rose by £6.3 million year on year.
Crediton Dairy cited complex economic conditions affecting the wider sector, with milk prices remaining high for longer before adjusting to what it described as “weaker market conditions”.
According to the producer, its bottom line was also impacted by weakened cream values after growth in supply exceeded demand.
The financial year saw greater milk volumes across Europe, driven by favourable spring conditions for feed production. This, in turn, reduced returns from cream and lowered the price paid for milk at farm level.
Despite these market pressures, Crediton Dairy maintained strong turnover growth. The increase was attributed to a stronger mix of sales to UK retailers, alongside higher bulk milk and cream volumes.
Since its management buyout in 2023, Crediton Dairy has invested £44.9 million. Capital spending in 2025 increased this by a further £3.2 million, including projects designed to expand processing and filling capabilities.
The company has also committed a further £5.4 million to developing capacity and capabilities, as well as upgrading site facilities.
“In the light of the ongoing strong demand for our growing portfolio of functional and flavoured dairy drinks we are continuing to invest in the dairy’s capacity and capabilities,” said managing director Tim Smiddy.
“This reflects the fact that we remain very positive about the long-term outlook for the dairy sector and the role that Crediton Dairy is playing as an independent, highly focused, added value, British business within it.”
