KP Snacks returned to strong growth last year as out-of-home snacking rebounded and it gained share in grocery.
The McCoy’s and Tyrrells owner posted revenue growth of 9.5% to £524.8m in the year to 1 January 2022, compared with growth of 1.1% in the previous period.
While benefiting from a 53-week year, the group also saw a rebound in out-of-home markets as well as ongoing growth in grocery, online and convenience.
The Intersnack-owned group increased its branded market share to over 20%, driving the highest retail sales value and volume growth in the market, it said, citing NielsenIQ figures.
Gross profit margins increased to 47.7% from 46.4% thanks to improved sales mix and branded growth rising faster than lower-margin own label lines.
Operating profits shot up 38% to £59.5m, despite a marked increase in marketing spend and significant capital investments.
The uplift in post-Covid performance came despite “ongoing supply chain challenges”.
CFO Giles Henderson told The Grocer trading conditions continue to be difficult since year-end, but the group was overcoming challenges and expected growth to continue.
“Since the end of 2021 the business has had to manage a cyber attack, and the Ukraine war, driving huge disruption to global supply chains, alongside major inflation across commodities, energy and logistics costs.
“The business is navigating these challenges, and continues to support our strategic partners, our customers, to deliver growth in our markets.”
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