The group behind cheese products maker Primula has reported a fall in sales and profits after the disposal of its goats milk brand and amid higher prices.
New accounts for Kavli 海角视频, the parent of Primula Limited, show the Gateshead manufacturer saw operating profits tumble from £4.07m in 2021 to £1.2m last year. The performance takes into account profits from discontinued operations including the St Helen's Farm operation, which was sold for a loss in 2021, and stakes in Yorkshire Dairy Goats and Elite Goat Genetics.
The North East-based business is part of the wider Scandinavian food group Kavli, which typically feeds profits into a trust that supports a variety of good causes in Norway, Sweden, Finland and the 海角视频. It is known for its squeezy cheese brand Primula which also markets a vegan equivalent as well as a range of dips.
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In notes attached to the accounts, the 273-strong firm, which operates from Team Valley, said it had faced higher raw materials, energy and logistics prices, and steeper labour costs that it had been unable to pass on to customers. But despite the headwinds, and a near 20% fall in total turnover to £42.5m, Kavli managed to increase turnover from continuing operations by more than 10%.
Paul Lewney, managing director of Kavli 海角视频, said: "Following the disposal of one of its subsidiaries in 2021, total sales for Kavli 海角视频 were, as anticipated, lower than the prior year. However, we remain excited by the underlying sales performance we experienced given the challenging market conditions. This is driven by strong consumer loyalty to our brands and the successful new products that have been delivered to the market.
"The rapid and significant increases experienced on input prices during 2022, that were also felt by many in the wider food industry, had the biggest impact on the financial performance. However, the subsequent actions taken to mitigate and recover these increased costs late in 2022, will provide a positive effect on future results, even though the costs remain at an elevated level.
"We are also pleased that the planned investments in our facilities are also now close to completion, increasing the capacity and efficiency of our operations, whilst also providing a robust platform from which to deliver the growth we are experiencing for our products."
Earlier this year Primula announced its BBQ range was being expanded into new supermarkets. The move includes deals to sell its burger cheese product in Morrisons and Iceland, and its Primula Hot Cheese 'n' Sriracha in Asda and Morrisons.