Walkers Snack Foods saw operating profits drop by 13.5% in the year to 27 December 2014 despite a healthy rise in revenues.
The PepsiCo owner snack foods manufacturer saw turnover rise 7.3% to £275.1m during the period, driven by pricing increases and increased manufacturing volumes.
However. Operating profit dropped to £18.7m from £21.7m, principally due to a £3m pension deficit payment made during the year. Excluding the pension payments, operating profit edged up 0.3% to £21.7m.
Overall manufacturing headcount fell during the year to 3,237 from 3,353 and total employee payments fell 1.5% to £128.4m.
Walkers sales & manufacturing and distribution arms are filed as separate accounts. Combined revenues across the three entities were 1% up to £547.5m during the year
Combined reported profits were 13.7% down to £35.7m, driven a fall in profitability at Walkers Snacks, the marketing and sales arm of the group, which also made a £8m pension contribution payment during the year.
Turnover decreased by 6.7% to £155.1m during the period due to the “challenging market environment” facing fellow group companies whose products Walkers Snacks sells.
Walkers Snacks made a £8m pension contribution payment, which hit its profitability. Before this payment, operating income was 1.2% down to £37.4m.
PepsiCo declined to comment on the accounts.
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