Dr Oetker sees sales rise despite ‘highly competitive’ market
THE dough has risen strongly at pizza maker Dr Oetker after profits increased by nearly £10m.
Sales increased by £1m to £155.9m in 2015, despite complaints of a “very tough” trading environment in the UK grocery sector. However the company, which produces Ristorante pizzas as well as a range of home baking products, posted pre-tax profits of £25.1m, up from £15.2m the year before.
Dr Oetker, part of the German group of the same name, employs around 500 people in the UK split between its Leeds head office and its manufacturing site in Leyland, Lancashire.
In its latest filing at Companies House, it said the company completed a capital reduction of £25m which was then distributed to its parent company Dr August Oetker KG.
The food retail, convenience and food service sectors continue to be “highly competitive” market places within the UK and Ireland, the company said.
“Significant focus continues to be placed on own label within the major multiples. Which when combined with increased demands for more frequent and deeper promotional support and coupled with a slowing in the development of the grocery market, means a very tough trading environment,” the company said.
“When you then additionally consider the ever increasing influence of hard discounters, on-line and convenience shopping in the UK and Irish grocery markets, the trading picture becomes tougher still.”
Dr Oetker said it continues to invest heavily in its North West manufacturing facility while driving operational efficiencies through the business in order to “respond and adapt” to the challenging market conditions.
