The Newcastle owner of global baby brand Tommee Tippee saw revenues rise to top £220m despite facing continuing supply chain challenges.
Revenues rose 8.7% from £203m to £220.6m in 2022 at Mayborn Group, while operating profit rose 9.6% from £31.45m to £34.46m, and pre-tax profit rose from £23.3m to £25m. Total comprehensive income, meanwhile, grew from £18.8m to £21.3m.
Mayborn Group, which has around 1,043 staff around the world, has it head office in Balliol Business Park in Newcastle, overseeing the design, manufacture and distribution of baby feeding, hygiene, sleep time and accessory products under the group’s popular brands, which include the well known Tommee Tippee baby bottles and the sleep brand Gro. The firm has bases in the US, Australia, France and Hong Kong while also owning and operating manufacturing facilities in Mansfield, Morocco and China. Accounts for 2022 have now been published in which the firm highlights growing market share and resilience in the face of inflation.
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In a report within the accounts, CEO Steve Parkin says: “2022 continued to see the impact of supply chain challenges from the effects of Covid on Chinese manufacturing and has also seen a slowdown in consumer spend with Western markets experiencing double digit inflation. We continue to take significant share in USA and Europe whilst retaining significant market leadership in the Ƶ and Australia, demonstrating the resilience and consumer love for the Tommee Tippee brand.
“Despite the headwinds we have retained strong cost controls, allied with significant productivity initiatives, that have enabled strong net profit.”
During the year, the group acquired the trade and assets of Baby Buddha Products LLC, a US based digital retailer of breast feeding products. The accounts show the firm paid £13.8m for the business, and that a further £7m payment could be triggered if Baby Buddha reaches certain targets.
In the accounts Mr Parkin welcomed the acquisition, and hinted that more could be made as the sector consolidates.
He said: “This represents an exciting opportunity to expand our footprint in this category in one of our core growth markets, as well as improving our DTC capability in the USA. This will be a key strategic growth driver in 2023 and the following years. The market is fragmented but is expected to consolidate over the next few years driven by the cost of developing and launching new products and costs of satisfying the requirements of sophisticated consumers shopping both online and in store.
“Management are confident that the group will continue to grow in line with its plans. Significant revenue will be achieved and profit growth will be maintained, 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.”
Following publication of the accounts, Mr Parkin added: “We saw strong growth across Mayborn Group in 2022 despite a very volatile business environment. Our global revenues increased by 8.7% to just over £220m and profit remained broadly flat against a back drop of supply chain challenges and a slow down in consumer spending. Our team continues to deliver much-loved innovative solutions that meet parents’ needs.”
