Bridge of Allan-based Graham’s The Family Dairy announced that its 2015 sales increased to £86.5 million from £85 million last year.
Pre-tax profit rose to £1.6 million in a year that has seen Graham’s reinvest heavily in the company.
Capital expenditure of £5 million has included investment at the firm’s dairy in Bridge of Allan to increase production of spreadable butter, as well as the acquisition of the Glenfield Dairy site in Fife from First Milk.
The acquisition will see the business expand into cottage cheese, quark and sour cream to expand Graham’s existing range of milk, cream, cheese, ice-cream, yogurt and butter.
Graham’s has also invested in its Nairn dairy to produce a new range of yogurts.
Graham’s said its spreadable butter, made at Bridge of Allan, is the fastest growing brand in Scotland.
More than half of Scotland’s population currently buy Graham’s products but the company said it will need to increase its margins in 2016.
Robert Graham, managing director, said: “We’re a family business at heart and our core values of farming, family, quality, heritage and provenance always ring true. We truly value the relationships we have with our 98 farmers and understand the pressures they are facing, which is why we continue to pay them the highest price in the UK. “
He added: “It’s been an excellent year but we’re not complacent and there’s much we still need to do. For example, to us it’s crazy that so much dairy produce bought within the UK isn’t actually made here.
“Those sales don’t benefit our local farmers and the extra mileage is no good for the environment either. It makes much more sense to back Scottish businesses and so that message will form a critical part of our plans next year.”