The supplier enjoyed a £10m increase in sales to £66.3m in the year to 30 April 2022, showed accounts posted at Companies House by the business under its registered name Cornish Farm Dairy.

This increase in turnover was driven by “organic growth being further bolstered by deepening relationships with key customers”, Trewithen said. The business also invested in milk processing capacity and completed a £2m expansion of its refrigerated warehousing.

But in a “year of challenge”, the company – which supplies a range of dairy products including milk, butter and clotted cream to regional and national retailers plus independents – also reported a £3.8m operating loss, falling from a £1.6m operating profit in its previous accounting period.

The volatility in the UK milk market had “resulted in significantly increased input costs”, as seen in other dairy businesses, Trewithen said.

However, despite the difficulties in the year to April 2022, Trewithen stressed the business had recovered quickly in the current financial period.

This was down to taking “significant steps to manage profitability”, it said.

The supplier said it had restructured and improved efficiency within its manufacturing environment, “significantly reducing its cost base”. Volumes were estimated to have grown by 12% this year, with the business “confident of a return to profitability for the full year”.