Tunnock’s, the maker of teacakes and caramel wafers, saw profits rebound last year despite high ingredients costs continuing to weigh on its bottom line.
Pre-tax profit hit £4.4m – up from £1m the previous year – though it remains depressed against the company’s long-term average, due to high prices resulting from the Ukraine war and a global cocoa shortage.
Cocoa prices have hit numerous all-time highs over the past year after several years of poor harvests in Ghana and Ivory Coast. The two countries produce nearly 60% of the world’s cocoa.
Turnover at Tunnock’s rose by 15% to £87.1m in the year to 24 February, according to accounts filed at Companies House. This was largely due to price rises, with the company only producing 5% more volume.
The biscuit producer continued to invest in its new factory as capital expenditure hit £3.4m last year. This brought its total spend on the factory to £55m over the past 10 years.
Tunnock’s said the investment was “essential to expand capacity and maintain our position at the forefront of the market”. It said it would continue to invest in its factory to expand distribution both in the UK and abroad.
The company is still run by 91-year-old Sir Boyd Tunnock, who created the Tunnock’s teacake in 1956. The company’s caramel wafer was invented by his father four years earlier.
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