John West suffered a first loss since 2010 last year after reversing a decision to pass on price rises to customers.
While revenues at the tinned fish brand grew 5% to £135m, the business posted a £6.7m pre-tax loss, according to its latest accounts at Companies House.
This was due to its decision to absorb rising costs and “maintain competitive pricing, prioritising long-term brand loyalty over short-term gains”, said a company spokesman.
In 2022, John West tried raising prices but suffered a consequent fall in volumes that triggered a 13.5% fall in revenue worth £20m.
Despite this, it maintained its dividend at £7.7m in 2022 – equivalent to £31 per share. This has now been slashed to £1.7m, or £6.08 per share.
European sales also tumbled for the second year in a row, from £4.3m to £2.8m. In 2021, it stood at £8.5m.
Thai Union, John West’s owner, announced last week its European president Paul Reenan had decided to leave the business after 14 years.
Reenan joined Thai Union in 2010 when he became managing director of John West in the UK. He then became MD of Thai Union Northern Europe after a series of acquisitions that included King Oscar in Norway and Rügen Fisch in Germany.
Earlier this year, John West launched its Ecotwist packaging after three years in development. The innovation eliminates excess packaging by holding towers together using an aluminium ‘smartstrip’. The redesigned can held the same amount of tuna but would save over 400 tonnes of steel annually, the company said.
John West accounts for more than a quarter of all canned fish sold in the UK. Last year, the category saw volumes drop 3.6% although rising prices meant total sales grew 3.1% to £410m, according to The Grocer’s Top Products survey.
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