Sales and profit have continued to grow at Scottish ingredients manufacturer Macphie in its latest financial year, while it also saw a recovery from a dip in margin.
In recently filed accounts on Companies House for the year ended 31 March 2024, the family-run firm reported turnover of £73.3m, up 7% on the £68.5m in FY23. Far stronger was growth in operating profit, which rose by 46% on last year to hit £5.4m.
Gross profit margin at Macphie had gone from 30% in FY22 down to 28.2% in the previous period but had rebounded back up to reach 31.7% this time around – overall profit for the financial year ended up at £4.2m.
The company said it was ‘pleased to report a strong financial performance for the year with continued top line growth and improved profitability versus the prior year’. However, while inflationary pressures had eased, raw material prices generally remained high with exceptional hikes seen in sugar and cocoa. The unrest in the Middle East region had also resulted in lengthened supply chain routes and higher costs, noted Macphie.
Among the products on its range are paste concentrates for bread, cake mixes, glazes, icings, toppings, fillings, and sauces with some gluten-free and vegan options
Strategic focus for the business, it said, remains on its core categories and building a balanced portfolio across sectors and channels within the UK market. It is also committed to further developing partnership to drive further expansion overseas, with ‘encouraging growth’ reported from its moves into Middle East and Far East markets. Former Nestlé exec Angela Willows was recently appointed chief financial officer to help support Macphie’s international growth ambitions.
The B Corp-accredited business highlighted that it was continuing to invest in innovation, sustainability, and in refurbishing and extending its facilities – over £10m of capital investment has been approved at its Glenbervie site in Aberdeenshire to create new capability and capacity within its core manufacturing estate. Spread over 2,000 acres, the estate also includes company headquarters, two wind turbines, and a biomass facility.
‘This significant investment enables the company’s ambitious growth plan as it transitions into the fourth generation of family ownership,’ stated Macphie directors in the strategic report.
Alastair Macphie, the great nephew of the company’s founder, stepped down in the Spring after 17 years as chairman and was replaced by non-executive director Norman Souter. Meanwhile, fourth generation family member Ed Widdowson switched from site director to strategy & sustainability director in November 2023 as Donald McDonald was brought in to assume the role of operations director.
Macphie also operates a 25,000 sq ft factory in Tannochside near Glasgow, which completed a £4m refurbishment in 2022.
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