Fentimans has fallen into the red as a disappointing summer and weakened shopper demand hit sales at the premium soft drinks brand.
The group swung from a £610k profit to pre-tax losses of £656k in the year ended 31 December 2023, as revenues sank 7.6% to £39m.
It registered a one-off exceptional cost of £717k in the year, with £509k relating to a restructuring carried out to help drive efficiencies and reduce its cost base in a bid to relieve the inflationary pressures squeezing margins. The remaining £208k was to settle a supplier dispute, according to the newly filed accounts.
Underlying operating profits came in at just £100k, compared with £610k in 2022.
A spokeswoman for Fentimans told The Grocer: “2023 was a tough trading year, with all the external pressures. Our cost position and trading has improved in 2024.
“We therefore anticipate a return to profit this year.”
The results follow Fentimans earlier this month warning the government it would have no choice but to close its doors if current proposals for extended producer responsibility went ahead.
In the latest accounts on Companies House, CFO Daniel Tobin called 2023 “a year of continued unusual challenge for the group against a backdrop of ongoing global uncertainty”.
Turnover in the UK fell 5.5% to £19.1m as the country was hit by one of the wettest summers on record, while the cost of living crisis continued to see consumers cut back on spending.
The group’s sales overseas also slumped by 9.4% to £19.9m, with Fentimans blaming “extreme regional weather events” across Europe. It was also hit by economic conditions in South America and Asia as distributors reduced stock levels.
Despite the headwinds, Fentimans focused on investing in its international markets. “All other things being equal, the group anticipates a return to growth internationally going forward as trading conditions stabilise,” Tobin wrote in the accounts.
In the US, there were also challenging trading conditions and the brand lost a key grocery account thanks to a planned exit of the adult soft drink market in the second half of 2023.
It expected lost volumes to be replaced during 2024 and remained “well placed for growth” in North America.
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