United Kingdom-based Millers Oil Ltd., manufacturer and independent blender of oils and lubricants, reported a 21% decline in net profit despite a 9% increase in sales revenue for its fiscal year ended March 31.
Based in Brighouse, West Yorkshire, the company in August filed its full-year 2022 financial statements on Companies House agency’s website.
The independent lubricant blender reported a decline in net profit to £1.6 million (U.S. $2 million), compared to £2 million for the same period of 2021. Operating profit fell to £2 million, from £2.6 million.
In its strategic report for the fiscal year, the company’s directors noted Millers Oils has been immune to challenging economic conditions. “Costs have risen in all areas of the business, particularly raw materials, energy and transport,” they noted. “The immense cost pressure has resulted in a fall in group operating profit.”
They pointed that due to the conflict in Ukraine and the aftershock of the COVID-19 pandemic, prices and availability or raw materials remains extremely volatile. “In order to mitigate this volatility, world prices are continually monitored, alternative suppliers sought and raw material inventory levels managed,” they added.
The directors noted they were encouraged by the increase in year-on-year group sales revenue. Sales revenue in the fiscal year rose 9% to £30.2 million, compared to £27.7 million.
Millers Oils supplies more than 5,000 distributors and end users in the U.K., and via a network of 50 international distributors in Europe, North and South America and Asia-Pacific.