Twinings: Profit jumps to almost £100m at tea brand
Profit at British tea brand Twinings has increased to almost £100m thanks to a “significant growth in the domestic market”.
The London-headquartered business has reported a pre-tax profit of £99.1m for the 12 months to 31 August, 2024, up from the £95m it achieved in the prior year.
New accounts filed with Companies House also show Twinings’ revenue increased from £226.7m to £234.3m in the period.
Twinings’ UK revenue grew from £106.6m to £114.2m and export sales rose from £86.5m to £88.8m.
However, income from royalties fell from £33.5m to £31.7m in the year.
Infusion teas boosts brand
Twinings is owned by Associated British Foods which is listed on the London Stock Exchange.
The owner of Primark does not report the individual financial performance of Twinings in its group results.
A statement signed off by the board said: “Revenue has increased year on year by three per cent with higher domestic and export sales being partially offset by a minor decline in royalty income.
“[There was] significant growth in the domestic market of seven per cent mainly from volume with strong performance in infusion and benefit teas driven by marketing investment and improved execution in store.
“Operating profit is down eight per cent year on year. Despite increased sales, input costs have also increased and there has been increased investment for future growth in both advertising and promotion in the domestic market and in R.Twining and Company’s business transformation project, which will upgrade our systems and processes and lead to benefits in future years.”
Twinings added that its profit after tax was lower “due to the higher tax rate applied year on year”.
How does Twinings compare to its rivals?
The results for Twinings come after sales at the owner of Yorkshire Tea passed the £300m mark for the first time in its history as its profit more than doubled during its latest financial year.
The Betty’s & Taylors Group reported a turnover of £319.2m for the 12 months to 31 October, 2024, up from the £295.7m it posted for the prior 12 months.
The accounts for the family business also showed its pre-tax profit jumped from £12.9m to £28.8m over its latest financial year.
Yorkshire Tea is made by Taylors of Harrogate, which forms part of the group alongside five Betty’s Cafe Tea Rooms, a craft bakery, Betty’s Cookery School and Betty’s by Post.
Also earlier this month, Morning Wire reported that the owner of tea brand Clipper was in line for a huge pay day after the sale of Whole Earth to KP Snacks saw a massive spike in profit.
Kallo Foods, whose products also include Kallo and Mrs Crimbles, sold the brand towards the end of 2024 for a then-undisclosed sum.
Accounts filed at the start of May revealed the group’s pre-tax profit swelled from £6.9m to £71.6m in 2024 because of the deal.
Also as a result, the group said it was to issue a huge dividend of £76m to its owner, a consortium consisting of PAI Partners and Charles Jobson.
The accounts also showed Kallo Foods’ turnover increased from £121.7m to £124.5m in 2024.