McCain reports £16m drop in pre-tax profits

Frozen foods giant McCain has reported a £16m drop in pre-tax profits in a year which it said it had been impacted by potato quality issues.

For the financial year to June 2017, the Scarborough-based firm reported pre-tax profits of £47m, down from £63m in 2016. The firm’s revenues rose to £466m from £452m in the previous year.

In its latest filing to Companies House, McCain said: “Operating  profit and RONA (return on net assets) were impacted as a result of potato quality issues which arose during storage periods, resulting in increased purchases of market related potato volumes compared to the prior year.”

McCain UK issued £10m of interim dividends for the year ended 30 June 2017, up from £50m paid in 2016. Final dividends will not be paid.

The firm reported a 3.1% growth in sales during 2017, compared to 2.8% in 2016 and said it had invested in its brand – including media advertising – during 2017.

McCain said its focus was to maintain brand leadership in frozen potato products, in both retail and food service channels; as well as innovation, product quality and category leadership.

The company added: “The company is committed to research and development activity, to seek new product lines and sources of raw materials, and to improve efficiency.”

Last year, work started on a major construction project which will see McCain invest more than £100m in its North Yorkshire production facility.