Ingredients supplier Macphie has reported a hike in sales and profit in its full-year results, driven by a strong performance in foodservice.
The Scotland-based business today (21 December) announced that sales for the year to March 2016 rose 7% year-on-year to £47.6.m.
Macphie said margins had been boosted by cost stability for the majority of its raw materials and benefits from capital investment and efficiency initiatives. Operating profit increased from £3.7m in 2015 to £4.6m in 2016, with gross profit increasing slightly from 26% to 27% of sales.
The business said the unclear economic climate following the Brexit referendum – and consequent currency fluctuations - could present a challenge, but added it was also an opportunity internationally.
It reported that, as forecasted at the end of last year, business in the Middle East had grown strongly in 2016 and had more than compensated for “continuing supressed spend” in Southern Europe.
Macphie managing director Andy Underwood described the results as very positive, adding they realised the firm’s vision for “profitable growth both in the UK and international operating markets”.
“We have seen strong sales growth in all our traditional channels with foodservice continuing to be the lead channel,” he said. “We have also gone through a number of changes in our contract manufacturing business which will deliver additional opportunities for growth in the year ahead.”
Chairman Alastair Macphie said the results were a reflection of the “hard work and dedication” of Macphie employees.
“With our strong innovation agenda, the board will continue to support significant investment in our product development and operational capabilities to ensure we maintain profitable growth,” Macphie added.