Pukka Pies has warned that price rises are ‘inevitable’ as it battles significant levels of power and labour inflation.
In newly filed accounts at Companies House, the Leicester-headquartered firm said it chose to delay the implementation of higher sales prices during the period (which ran from 28 May 2023 to 25 May 2024) to assess the mid- to long-term implications of underlying inflation. However, it has since concluded that they will be coming down the line over the next 12 months.
Turnover increased during the period from £79.1m to £85.3m as a result of new customers, improved distribution in existing customers, and retail category growth, as well as new product launches. NPD released during the timeframe included an All Day Breakfast Slice, Chicken Pasty, and a trio of pies with flavours including Doner Kebab, Chicken & Chorizo, and Cheese & Bacon.
Operating profit, before exceptional costs, for the period was £4.4m – down £6.8m from the year prior. The directors said they were ‘satisfied’ with this given the long-term benefit to be derived from a recent corporate restructure. The company was reorganised into a wider group structure which saw the creation of a new immediate parent, Claytonkemp Holdings Limited.
Exceptional payments of £1.6m, which were ‘predominantly advisor fees relating to the strategic review and re-structure of the group’ reduced operating profits versus the previous financial year. Profit for the period after tax and exceptional payments was £1.9m.
Pukka Pies is in the middle of a multi-year cap-ex investment programme with the objective of ‘continual improvement in production efficiency and maintaining market leading facilities’. CEO Isaac Fisher, who was promoted into the role from managing director in May 2024, described the five-year plan to supercharge sales was “ambitious and achievable”.
Over the past five years, Pukka has invested £15m in its production site in the town of Syston near Leicester, including installing new custom-built freezers in early 2023. The manufacturer will continue to develop its bakery for future growth, confirmed Fisher, including the possibility of creating “even more disruptive new products”.
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