Despite the cocoa crisis in Africa, Tunnock’s, the biscuit manufacturer, has reported a fourfold increase in profit during its latest financial year.
The Scottish confectionery firm, led by Sir Boyd Tunnock, recorded a pre-tax profit of £4m for the 12 months to 24 February, 2024, according to recently filed accounts with Companies House, as reported by .
This is a significant increase from the previous year's pre-tax profit of £1m. However, the £4m profit is still lower than the £5.4m achieved in the year to 26 February, 2022.
The results also reveal that Tunnock’s saw a turnover of £87m in its latest financial period, an increase from £75.8m. The company, which has been operating for over 130 years and is based in Eddington, Scotland, offers products such as teacakes, caramel wafers, snowballs and wafer cream.
Like other confectionery companies, Tunnock’s has been grappling with the rising cost of chocolate due to changing climate patterns affecting cocoa supplies in West Africa. Earlier this year, dusty winds from the Sahara blocked sunlight needed for cocoa bean pods to grow in Ghana, Ivory Coast, Nigeria and Cameroon, where approximately three-quarters of the world’s cocoa is produced.
In the previous season, heavy rainfall caused a rotting disease among the cacao trees, which produce cocoa, the main ingredient in chocolate.
In its most recent financial results, Tunnock’s reported an increase in its gross profit percentage from 25.4 per cent to 26.7 per cent. However, this figure was lower than the previous year's due to "due to significant increases in raw material costs" following the Ukraine invasion and the ongoing cocoa crisis.
Tunnock’s further stated: "These raw material costs increases are very challenging and continued to impact the company’s financial performance after the year end."
