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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 £155.4m, while last year’s operating profit of £15.5m slumped to a loss of £73.6m.

Staff numbers fell from an average of 947 employees to 888. Meanwhile, a note within the accounts highlights costs of £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 “began to take root” 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: “Significant 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’s Direct to Consumer website, and productivity improvements.”

However, predicted growth has been revised downward because of a raft of cost challenges ahead. As a result of changes in “assumed long term growth rates”, a goodwill impairment of £68.2m was recognised for the year.

A report signed off by director Jianjun Shi said: “While management remains satisfied with the group’s overall performance in the context of the prevailing adverse market conditions, and the delivery of £18.4m in operating cashflows in-year, the group’s long-term revenue growth trajectory has been revised downward to reflect prevailing macroeconomic challenges, particularly rising costs associated with cross-border trade.

“Although the group’s 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.

“Consumer 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.