Ingredients manufacturer Macphie has reported double-digit increases in turnover and operating profit, although rising input costs caused a slight dip in margins.
In its full accounts to 31 March 2023, the Aberdeenshire-based firm posted sales totalling £68.5m, marking a 15% improvement on the £59.5m from the prior financial year. Operating profit was up by 11%, going from £3.5m to its latest £3.9m.
Gross profit margin, it noted, had decreased to 28.1% from the 30% in FY2022 due to significant inflationary pressure during the year and reflecting the absorption of costs which could not be passed on to customers.
“Throughout the year, the company faced considerable headwind on raw material cost and general inflation, coupled with availability and supply chain issues relating to the overall economic conditions,” stated Macphie directors in their review of the financial statements.
The family-run business said it had continued to build on its post-pandemic recovery and was trading at a level that provided sufficient confidence to continue its strategic growth plan. During its most recent financial period, Macphie recommenced and completed the refurbishment of its Tannochside facility near Glasgow, which had ceased manufacturing operations in 2020 during the pandemic. It also established a trading office in Dubai to support its business activity in the Middle East.
Respecting its B Corp status, and with fourth generation family member Ed Widdowson recently assuming the new role of strategy & sustainability director, there were detailed accounts for carbon emissions included in Macphie’s results.
Thanks to a more than 15% reduction in purchased electricity, it was able to cut its total gross emissions of CO2 equivalent by 70 metric tonnes in FY2023 compared to the previous term. The manufacturer is able to generate some of its own power for operations via an onsite biomass facility installed at its Glenbervie plant in 2008, as well as two wind turbines used since 2014.
Looking forward, Macphie revealed its strategic focus remains on growth within the company’s core business categories, with a clear plan to expand its core proposition to other sectors and channels as its overall portfolio is rebalanced.
It said it has a strong balance sheet and a robust plan to deal with the near-term challenges, while developing a mid to long-term strategic plan to realise broader market opportunities within domestic markets and overseas.
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