Oils and canned produce specialist KTC Edibles saw a drop in sales and profitability last year amid a share drop in commodity prices following the spikes in 2022.
The operating company KTC (Edibles) Ltd saw annual sales fall 11.7% back to £522.6m in 2023 despite adding two acquisitions, as global edible oil prices dropped substantially during the year.
KTC said trading at the start of the year was “challenging” due to this commodity price drop, with the group forward-buying oils at higher prices to ensure stability of supply.
The company said this impacted profitability in this early part of the year, with operating profits dropping to £15.3m from £21.2m.
However, KTC said performance improved through the remainder of the year, helped by strategic decisions taken to refresh its trading structure following its acquisition by private equity investor Endless in 2022.
The group invested in operational efficiencies and new product development to support future growth, while simplifying its range and core business, restructuring its factor footprint and outsourcing distribution activities.
During 2023 it made two strategic acquisitions of margarine and bakery fats producer Cardowan Creameries and Irish vegetable oils player Trilby Trading.
A spokesperson for owner Endless said the group was continuing to see “positive momentum”.
“As stated in February we have taken a number of actions to both simplify and streamline the business and invest behind additional capabilities,” the spokesperson said.
“The first quarter of 2023 was challenging but we were pleased to see the results of this hard work translate into improved profitability in the second half of the year and for this strong momentum to continue into 2024.”
Group-wide KTC accounts showed total turnover of £558.4m from £357.6m in the shorter seven-month period ended 31 December 2022.
Operating profit of £15.1m was up from £5.1m in the shorter comparison period.
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