Profit at Lucozade maker soars despite cost pressures
Profit at Suntory Beverage & Food, which owns both Lucozade and Ribena, has been boosted by higher demand for sports refreshments and ready-to-drink alcohol.
Turnover at the company, which has over 40,000 employees across its various subsidiaries, rose two per cent to £552m in the year ended 2024, according to its latest reports filed with Companies House.
Profit after tax rose 10 per cent to £95m year on year, despite a £4m rise in administrative costs and an “unprecedented” rise in inflation.
Operating profit increased from £107m in 2023 to £122m in 2024.
Michael Friel, finance director at SB&F, said he was “proud” of the company’s positive results, despite the “significant cost pressures”.
“These results reflect the strength and resilience of our business in a year that continued to be shaped by high inflation, shifting consumer behaviours and operational challenges,” Friel said.
Climate risk a serious concern
SB&F did, however, point to one significant risk going forward. The possibility of rising temperatures interfering with the company’s “ability to operate and supply products”, it said.
“It is recognised that increases in costs due to the introduction of a carbon tax, an opportunity loss due to insufficient supply of water at production sites, and an increase in raw material costs due to a decrease in the yield of agricultural products are the three [greatest] risks.”
Food prices have already been under pressure from a deteriorating climate this year. A July report linked inflation with weather extremes that “exceeded all historical precedent prior to 2020”.
Data insights group Worldpanel has estimated that Brits’ average household spend at the grocers has now reached £5,283 a year, a figure which could rise by £275 by the end of the year.
Despite the climate risks, Friel said the outlook for 2025 is “positive”.
“With our ambition in category expansion and strong core in Lucozade and Ribena… we’re excited about the opportunities ahead,” he said.