Sales at pet food maker Butcher’s Pet Care have declined for the first time in ten years as premium rivals ate away at the top line.
However, tight control over costs ensured profitability at the Northamptonshire-headquartered group continued to soar in the year to 31 July 2016, new accounts for FW Baker Ltd filed this week at Companies House revealed.
Operating profits rose more than 25% to £9.2m as cost of sales dropped by almost £4m and marketing, selling and distribution expenses fell. Pre-tax profits climbed to £11m thanks to net proceeds of £1.2m on a land sale.
The canned dog and cat food manufacturer has invested heavily in its growth in the past decade, moving to a new £40m HQ and factory in 2012 to significantly increase capacity to more than five million cans a week.
Revenues have increased for the past ten years in a row from £36.8m in 2005 to £92.7m in 2014/15, supported by an expansion into Europe and national television campaigns in the UK.
But the growing trend for premiumisation and humanisation in the pet care category – with the likes of MPM Products, Lily’s Kitchen, Pooch & Mutt, and a gourmet range from Purina all benefitting – saw sales at Butcher’s slip 3% to £90.3m in 2015/16.
The declines all came from the UK, with sales to Europe – where the company exports to Italy, Poland and Eastern Europe – jumping 8.1% to £5m.
Butcher’s also plans to pump another £17m of capex into its manufacturing facility in 2017 to grow capacity further.
“The group has made an encouraging start to the new financial year, with market conditions remaining competitive,” chairman Graham Baker said in the accounts.
Baker set up Butcher’s Pet Care in 1982 as Midland Pet Food Canners to use by-products from the family’s butchery business and slaughterhouse.
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