Sales at premium petfood manufacturer MPM Products have continued to rise as owners splurged on luxury meals for their cats and dogs.
The maker of Applaws and Encore, which are listed in all major UK supermarkets as well as specialist retailers such as Pets at Home, reported an 18% jump in revenues to £62.6m in 2018.
The prior year, MPM sales had also achieved double-digit increase, up 19% to £53m.
Pre-tax profits leapt up to £6.5m from £3.7m, as a result of higher sales and “tight control” over the business’ administrative costs.
Shareholders’ funds also significantly increased from the previous financial year, up from £10.4m in 2017 to £16m for 2018.
Looking ahead, MPM directors expect the general level of activity to increase in the forthcoming year.
“The trading outlook remains positive given the company’s brands are well positioned in their respective markets and the consumer trend towards premium, natural products is expected to continue,” MPM explained.
The business was snapped up by mid-market private equity firm ECI Partners in 2016, in a deal valued around £50m.
Back then, ECI pledged to accelerate the brand’s international growth. MPM currently exports its “meaty” products – made with chicken breast, tuna steak and prawns - to over 40 countries.
Earlier this year it was reported that ECI had appointed advisors to explore a potential sale of MPM as it looks to pocket around £100m, doubling its initial investment in the business.
Since the ECI and MPM deal, there have been a number of significant acquisitions in the pet food category, with Armitage Pet Care, Pet Food UK and Forthglade all purchased by PE groups.
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