The North East owner of global baby brand Tommee Tippee tumbled into the red last year as it was hit by changing consumer habits and a global decline in trading.
The holding company for Mayborn Group, based at Balliol Business Park in Newcastle, oversees the design, manufacture and distribution of baby feeding, hygiene, sleep time and accessory brands including Tommee Tippee feeding bottles, the Gro brand for sleep products and Baby Buddha within breastfeeding. The firm, which also has bases in the US, Australia, France and Hong Kong, has published accounts covering 2024 in which revenues dropped 14.7% to 拢155.4m, while last year鈥檚 operating profit of 拢15.5m slumped to a loss of 拢73.6m.
Staff numbers fell from an average of 947 employees to 888. Meanwhile, a note within the accounts highlights costs of 拢2.02m for a strategic review of the business. Despite falling to a loss, the company said that the positive effects of investment in brand, product innovation and talent 鈥渂egan to take root鈥 in the second half of the year, with market share gains being made within its core categories.
In the accounts, directors also said they are confident that the group will return to growth in line with its plans, adding: 鈥淪ignificant revenue will be achieved and profitable growth will resume, driven by a robust innovation pipeline, continued global distribution and market share gains, development of the group鈥檚 Direct to Consumer website, and productivity improvements.鈥
However, predicted growth has been revised downward because of a raft of cost challenges ahead. As a result of changes in 鈥渁ssumed long term growth rates鈥, a goodwill impairment of 拢68.2m was recognised for the year.
A report signed off by director Jianjun Shi said: 鈥淲hile management remains satisfied with the group鈥檚 overall performance in the context of the prevailing adverse market conditions, and the delivery of 拢18.4m in operating cashflows in-year, the group鈥檚 long-term revenue growth trajectory has been revised downward to reflect prevailing macroeconomic challenges, particularly rising costs associated with cross-border trade.
鈥淎lthough the group鈥檚 multinational manufacturing and commercial presence helps mitigate some of these pressures, broader inflationary trends are expected to affect consumer and household disposable incomes nevertheless in future periods, with a knock-on impact to volumes.
鈥淐onsumer shopping behaviours continue to shift within the infant accessories sector, with traditional retail avenues increasingly transitioning to online platforms. The group operates a multi-channel presence, positioned as a distinguished, recognisable brand with an extensive range and the necessary capabilities to effectively serve all retail channels, on and offline, ensuring we can cater to changing consumer preferences and convenience wherever consumers choose to shop.
鈥淣evertheless, the market remains fragmented and is expected to consolidate over the next few years, driven by the high cost of expertly developing, launching and marketing new products which meet the evolving needs of new generations of consumers.鈥
The holding company is owned by Shanghai Jahwa United Co Ltd, a personal care company quoted on the Shanghai stock exchange which snapped up the Tommee Tippee brand in 2016.
Following the publication of the accounts, Jianjui Shi, CEO at Mayborn Group, said: "After a challenging start to 2024, performance improved as investments in our brands, innovation, and people began to deliver results. Our diversified operations and strong multi-channel presence keep us well positioned to meet evolving customer needs.
"Looking ahead, we expect significant revenue growth driven by continued innovation, global reach, and productivity gains."
