Profits at Suntory Beverage & Food, the owner of Lucozade and Ribena brands, have received a significant lift from increased appetite for sports drinks and ready-to-drink alcoholic beverages.
Revenue at the firm, which employs more than 40,000 staff across its various divisions including at its site in Coleford in Gloucestershire, climbed 2% to £552m in the year to 2024, according to its most recent filings with Companies House.
Post-tax profits jumped 10% to £95m year-on-year, notwithstanding a £4m increase in administrative expenses and an "unprecedented" surge in inflation.
Operating profits grew from £107m in 2023 to £122m over the year.
Michael Friel, finance director at SB&F, expressed his pride in the firm's encouraging performance, despite facing "significant cost pressures", as reported by .
"These results reflect the strength and resilience of our business in a year that continued to be shaped by high inflation, shifting consumer behaviours and operational challenges," Mr Friel said.
SB&F did highlight one major threat on the horizon.
The prospect of escalating temperatures disrupting the business's "ability to operate and supply products", it warned.
"It is recognised that increases in costs due to the introduction of a carbon tax, an opportunity loss due to insufficient supply of water at production sites, and an increase in raw material costs due to a decrease in the yield of agricultural products are the three [greatest] risks."
Food prices have already faced mounting pressure from a worsening climate throughout this year. A July report connected inflation with weather extremes that "exceeded all historical precedent prior to 2020".
Research firm Worldpanel has calculated that British households' average annual grocery expenditure has now hit £5,283, a sum that could increase by £275 by year-end.
Despite these climate challenges, Friel described the 2025 outlook as "positive".
"With our ambition in category expansion and strong core in Lucozade and Ribena... we're excited about the opportunities ahead," he said.
