The North East manufacturer of Primula cheese has welcomed increased turnover and profits but warned that it faces a 鈥渢ougher economic landscape ahead鈥.
Kavli 海角视频, which is based on the Team Valley in Gateshead, has published accounts for 2024 in which its turnover rose from 拢47.5m to 拢50.8m. Over the same period, operating profit increased from 拢2.7m a year earlier to 拢4.2m.
The company is part of the wider Norwegian food group Kavli, which typically feeds profits into a trust that supports a variety of good causes in Scandinavia and the 海角视频.
A number of North East charities have benefited from donations in recent years, with the company favouring health and environmental causes, but also supporting organisations nominated by local staff.
In new accounts, Kavli said that increased sales, an improved product mix and higher prices had boosted results, though it had also had to cope with higher input and labour costs. The company鈥檚 headcount rose slightly during the year to 283, with staff costs increasing by almost 拢1m to 拢11.3m.
The vast majority of the firm鈥檚 sales came in the 海角视频, but there was 拢2.1m of revenues from Europe and 拢148,000 from the rest of the world, the accounts showed.
Mark Butel, Kavli 海角视频 MD, said: 鈥淭his improvement is attributed to Kavli鈥檚 proactive response to recent cost price and labour increases, as well as strategic investments in new technology.
鈥淲e have implemented a state-of-the-art piece of equipment, enabling the manufacture and sale of exciting new products throughout 2025 and beyond. The company鈥檚 balance sheet further underscores its success, with net assets at year-end notably higher than the prior year.
鈥淭his strong financial position provides a solid foundation for future growth and continued innovation.
鈥淗owever, Kavli remains mindful of the tougher economic landscape ahead. Rising input costs, ongoing labour market pressures, and shifting consumer behaviours present real challenges for the industry.
鈥淭he company is actively preparing to navigate these headwinds with resilience and agility, ensuring it continues to deliver quality, value, and innovation to its customers.
鈥淎ll profits from Kavli 海角视频 go to good causes, reinforcing its commitment to making a positive impact beyond the business. Kavli looks forward to building on this momentum for the remainder of 2025 and beyond, while staying grounded in its values and ready to adapt to the evolving market environment.鈥
The company has a long history in the North East.
Last year, Primula celebrated its 100th anniversary.
