British tea brand Twinings has reported a surge in profits to nearly £100m, buoyed by robust growth in the º£½ÇÊÓƵ market.
The London-based company disclosed a pre-tax profit of £99.1m for the year ending 31 August, 2024, an increase from the previous year's £95m, as reported by .
According to newly filed accounts at Companies House, Twinings saw its revenue climb from £226.7m to £234.3m during the same period.
The firm experienced a notable rise in º£½ÇÊÓƵ sales, which went up from £106.6m to £114.2m, while export sales also improved, moving from £86.5m to £88.8m.
However, the brand did see a slight dip in royalty income, which decreased from £33.5m to £31.3m over the year.
Infusion teas boosts brand
Twinings is part of Associated British Foods, a conglomerate listed on the London Stock Exchange, which also owns retail giant Primark; however, ABF does not detail Twinings' financial results separately in its group reports.
A statement from the board highlighted: "Revenue has increased year on year by three per cent with higher domestic and export sales being partially offset by a minor decline in royalty income."
It further noted: "[There was] significant growth in the domestic market of seven per cent mainly from volume with strong performance in infusion and benefit teas driven by marketing investment and improved execution in store."
"Operating profit is down eight per cent year on year. Despite increased sales, input costs have also increased and there has been increased investment for future growth in both advertising and promotion in the domestic market and in R.Twining and Company's business transformation project, which will upgrade our systems and processes and lead to benefits in future years."
Twinings further stated that its profit after tax was lower "due to the higher tax rate applied year on year."
How does Twinings stack up against its competitors?
The financial results for Twinings follow hot on the heels of Yorkshire Tea's owner surpassing the £300m sales mark for the first time in its history, with profits more than doubling during its most recent financial year.
Betty's & Taylors Group reported a turnover of £319.2m for the 12 months to 31 October, 2024, an increase from the £295.7m it posted for the previous 12 months.
The family-run business's accounts also revealed that its pre-tax profit leapt from £12.9m to £28.8m over its latest financial year.
Yorkshire Tea is produced by Taylors of Harrogate, which is part of the group alongside five Betty's Cafe Tea Rooms, a craft bakery, Betty's Cookery School and Betty's by Post.
Earlier this month, City AM reported that the owner of tea brand Clipper was set for a substantial windfall following the sale of Whole Earth to KP Snacks, which resulted in a significant surge in profit.
Kallo Foods, the company behind brands such as Kallo and Mrs Crimbles, sold off the brand towards the end of 2024 for an undisclosed sum at the time.
Accounts filed in early May revealed that the group's pre-tax profit surged from £6.9m to £71.6m in 2024 due to the deal.
As a result of this, the group announced plans to issue a substantial dividend of £76m to its owner, a consortium made up of PAI Partners and Charles Jobson.
The accounts also indicated that Kallo Foods' turnover rose from £121.7m to £124.5m in 2024.
