Confectionery brand Montezuma’s has been returned to profitability in its first year since being rescued from administration.
Revenues at the business surged in the year to 31 May 2024 to £10.8m – higher than at the chocolate maker’s peak – as new owner Paramount Retail Group focused on a turnaround.
A drive for operational efficiencies and targeted investment also helped the business hit EBITDA of £1m.
The majority of sales now come from supplying Amazon, supermarkets such as Waitrose, Sainsbury’s, Asda, Ocado and Co-op, as well as John Lewis, and wholesale.
However, Montezuma’s still trades a slimmed-down retail operation from three of its own high street stores in Winchester, Oxford and Guildford, as well as DTC online.
“Montezuma’s transformation is a testament to the power of strategic investment and an engaged, forward-thinking culture,” said Paramount Retail Group chairman Paul Taylor.
“This is the kind of result that defines our hands-on approach to business, proving that with the right focus and effort, even distressed assets can become success stories.”
Paramount added Montezuma’s was poised for further growth in 2025 and beyond, with plans to launch UK-wide pop-up shops featuring new product ranges and developing an integrated loyalty scheme, and also expanding into foodservice.
The group – which also owns a number of pet businesses, Saltaire Brewery and has stakes in confectionery businesses Bristows of Devon and Crawford & Tilley – rescued Montezuma’s in a pre-pack deal in May 2023.
The chocolate producer had been lossmaking ever since a private equity takeover by Inverleith in 2018, with the business haemorrhaging costs during the Covid lockdown when it was forced to close as a non-essential retailer.
Paramount said since acquiring the brand it had built “a stronger, more dynamic team with deep fmcg experience, revitalising operations and strengthening Montezuma’s market position”.
A dedicated NPD team had also “fostered collaboration, opened private label opportunities and streamlined sourcing, ensuring Montezuma’s remains agile in a competitive market”.
Paramount plans to explore categories beyond chocolate to diversify the brand and also expand exports through distributor partnerships.
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