Tangerine Confectionery has blamed a steep decline in profits on the impact of ‘extraordinary’ commodity cost inflation.

The maker of Butterkist popcorn and Barratt sweets posted a 39% fall in operating profits to £6.9m in the year to 31 December 2011, according to accounts published at Companies House.

The confectioner said it had been unable to keep pace with hikes in the cost of key raw materials.

“Although price increases were implemented, they did not fully recover the cost escalation as they had a delayed impact and had to be kept to a level that the consumer could afford,” said chairman Stephen Joseph.

A sharp increase in the cost of sugar in early 2011 and rises in maize and gelatine prices have put particular pressure on sugar confectionery.

Profits fell despite a 1.8% increase in turnover to £156.6m. Tangerine said Butterkist and Henry Goode’s liquorice had performed well, growing by 7% and 70% respectively. Of its other two main brands, Princess grew slightly and Barratt’s sales fell by 2%.

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