Food firm’s turnover tops £120m despite costs of raw materials increasing at ‘exceptional levels’
A growing Ossett-based food business which earlier this year bought an ingredients company has seen its turnover top £120m despite the raw materials increasing at “exceptional levels.”
Newly Wed Foods has filed its annual accounts for the year ended 31 December 2018. Its turnover grew to £121.2m, up 2.4% on the £118.3m achieved in the previous year.
But its pre-tax profits dropped to £17.2m, down from £20.9m, in a year that the firm had to focus on reducing stock levels, debtors and creditors compared to the prior year.
Newly Weds Foods said its growth was achieved “despite increased competitor activity and raw material prices increasing at exceptional levels, due to amongst other things, to the continued impact of the Brexit referendum.”
The firm added: “This is reflective of our continued effort to eliminate all low margin/loss leader products and good management of the pricing pressures associated with raw materials in the industry.”
The businesses said it would not pay dividends “in order to keep funds available for future investment.”
During the year, the business spent £1.5m on research and development. It said it had also incurred expenditure on re-shaping the business through capital expenditure to continue to operate efficiently and “meet the increasing demands of its customer base”
The firm has its European HQ in Ossett. Its global headquarters opened in Chicago in 1932 and the firm also has manufacturing sites in Corby and Banbury, along with 17 sites in North America and 12 throughout India, China, Thailand, Australia and New Zealand which support food processor and food service operators in more than 80 countries.
It produces food coatings, seasonings, sauces and functional ingredients for the food processing and food service industries.
In June this year – post period-end – the firm announced that it had acquired Jigsaw Foods, a manufacturer of sauces and butters based in Shirebrook, Nottinghamshire and Maryland in the US. The firm was looking to add to its liquids manufacturing division.
