Pukka Pies: Price rises ‘inevitable’ at chip shop favourite
Chip shop favourite Pukka Pies has warned prices rises are “inevitable” as it battles “significant levels of power and labour inflation”.
The Leicester-headquartered company said it delayed increasing its prices during its latest financial year “assess the mid to long-term implications from the underlying inflation” but has since concluded that rises should be introduced.
The comments have been included in the accounts for Pukka Pies for the firm’s latest financial year to 25 May, 2024.
For the year, the firm’s turnover increased from £79.1m to £85.2m while its pre-tax profit was cut from £6.7m to £3.4m, according to newly-filed accounts with Companies House.
The company’s UK turnover increased from £78.7m in the year, up from £84.7m, while its European sales rose from £353,527 to £493,707.
In the rest of the world, its turnover grew from £8,749 to £12,992.
Pukka Pies, which was founded by the Storer family in 1963, launched an investment search in March 2024 which resulted in a corporate restructure.
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A statement signed off by the board said: “The directors are satisfied with business performance during its first year of trading as a group following the corporate reorganisation which inserted two new companies into the corporate structure.”
Pukka Pies added that its turnover rose because of new product launches, new customers, improved distribution in existing customers and retail category growth.
The directors also said they were “satisfied” with the firm’s operating profit before exceptional items, which fell from £6.8m to £4.5m, “given the long-term benefit which will be derived from the recent corporate restructure”.
Pukka Pies added: “Over the course of the financial period the group has seen significant levels of power and labour inflation.
“The group chose to delay the implementation of higher sales prices to assess the mid to long-term implications from the underlying inflation, but has since concluded that higher sales prices are inevitable over the next 12 months.”
On its future, Pukka Pies said: “The group continues to build brand awareness and the directors expect the business to grow over the coming years.”
It also said it will continue to invest in its bakery to the tune of £3.9m.