The North East manufacturer of Primula cheese has welcomed increased turnover and profits but warned that it faces a “tougher economic landscape ahead”.
Kavli Ƶ, which is based on the Team Valley in Gateshead, has published accounts for 2024 in which its turnover rose from £47.5m to £50.8m. Over the same period, operating profit increased from £2.7m a year earlier to £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 Ƶ.
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’s headcount rose slightly during the year to 283, with staff costs increasing by almost £1m to £11.3m.
The vast majority of the firm’s sales came in the Ƶ, but there was £2.1m of revenues from Europe and £148,000 from the rest of the world, the accounts showed.
Mark Butel, Kavli Ƶ MD, said: “This improvement is attributed to Kavli’s proactive response to recent cost price and labour increases, as well as strategic investments in new technology.
“We 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’s balance sheet further underscores its success, with net assets at year-end notably higher than the prior year.
“This strong financial position provides a solid foundation for future growth and continued innovation.
“However, 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.
“The company is actively preparing to navigate these headwinds with resilience and agility, ensuring it continues to deliver quality, value, and innovation to its customers.
“All profits from Kavli Ƶ 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.”
The company has a long history in the North East.
Last year, Primula celebrated its 100th anniversary.
