Pukka Pies, a staple in chip shops across the º£½ÇÊÓƵ, has warned that price increases are "inevitable" as it grapples with "significant levels of power and labour inflation."
The Leicester-based firm revealed that it had postponed price hikes during its most recent financial year to "assess the mid to long-term implications from the underlying inflation", but has since determined that rises are necessary, as reported by .
These remarks were included in the company's accounts for the financial year ending 25 May, 2024.
Over this period, the company saw its turnover rise from £79.1m to £85.2m, while pre-tax profit fell from £6.7m to £3.4m, according to newly-filed accounts at Companies House. The firm's º£½ÇÊÓƵ turnover increased from £78.7m to £84.7m, and European sales rose from £353,527 to £493,707.
Elsewhere in the world, turnover grew from £8,749 to £12,992.
Founded by the Storer family in 1963, Pukka Pies initiated an investment search in March 2024, leading to a corporate restructure.
A statement approved by the board read: "The directors are satisfied with business performance during its first year of trading as a group following the corporate reorganisation which inserted two new companies into the corporate structure."
Pukka Pies also noted that its turnover increase was due to new product launches, gaining new customers, improved distribution among existing customers, and growth in the retail category.
The directors expressed their satisfaction with the company's operating profit before exceptional items, which dropped from £6.8m to £4.5m, citing the long-term benefits expected from a recent corporate restructuring.
Pukka Pies commented: "Over the course of the financial period the group has seen significant levels of power and labour inflation."
The firm initially delayed implementing higher sales prices to evaluate the mid to long-term implications of underlying inflation but has since concluded that price increases are inevitable over the next 12 months.
Regarding its future, Pukka Pies stated: "The group continues to build brand awareness and the directors expect the business to grow over the coming years."
The company also plans to continue investing in its bakery, earmarking £3.9m for this purpose.
