Price rises see sales surge at McVitie’s Digestives, Jaffa Cakes and Jacob’s Mini Cheddars maker
Price rises helped sales surge at the maker of McVitie’s Digestives, Jaffa Cakes, Jacob’s Cream Crackers and Mini Cheddars in 2023, it has been revealed.
The company, which also makes the likes of Carr’s, McVitie’s Penguin bars and Jacob’s Twiglets, has posted a revenue of £1.2bn for the 12 months, up from £1.1bn, according to newly-filed accounts with Companies House.
The business also reported a pre-tax profit of £17.3m for 2023, up from £600,000.
UMV Global Foods Holding Company Limited is part of the London-based Pladis, itself a subsidiary of Yildiz Holding.
A statement signed off by the board said: “Geographically, the group is well positioned to grow in large, established markets, which it believes will continue to grow in the medium to long term, as well as growing its market positions in higher growth emerging markets.
“During 2022, global supply constraints, exacerbated by the war in Ukraine, resulted in unprecedented inflation across the group’s cost base with prices of many of its key inputs being affected by global markets, including wheat, palm oil, coca, sugar, gas, electricity and packaging. he’s inflationary pressures continued throughout much of 2023.”
The company added: “During 2023, in response to continued unprecedented inflation and guided by the Compete to Win strategy, the group continued to invest in its brands, accelerated the pace of innovation, executed well in market and took further actions to reduce the supply chain cost base and develop talent.
“The group believes future growth will be driven by adapting to key consumer trends and by engaging new consumers for its products in existing and new markets.”
It also said the rise in its turnover was due to increased product prices “in response to unprecedented cost inflation”.
The group’s UK and Ireland sales increased from £756m to £883.2m while they grew from £399.4m to £402.9m in the rest of the world.
During the year the average number of people employed by the group fell from 5,724 to 5,133.
The accounts for its parent company, Pladis Foods, are due to be filed with Companies House by the end of September 2024.