Finnebrogue owner Lynn’s Country Foods saw revenues jump by 22% last year, though profitability took a hit due to pig price fluctuations, administrative expenses and losses on exceptional items.
Sales for the year to 25 February 2023 increased from £119.3m to £145.3m, according to the supplier’s annual report and accounts, while profit before exceptional items rose by 4% year on year, from £7.7m to £8.1m.
Operating profit, however, fell by 62.8%, from £9.4m to £3.5m, with Lynn’s Country Foods citing exceptional items of £5.3m from a loss on the disposal of assets as the main driver. Administrative expenses also rose, by just over £4m, while R&D costs almost doubled to £1m.
Gross margin also fell in the period, from 25.9% to 24.7%, with the supplier pointing to the impact a higher Standard Pig Price had on both its increase in sales revenues and the related shrinking in margin.
However, Lynn’s stressed the business had still performed satisfactorily, despite the myriad challenges facing the food sector.
“We are happy to have continued our growth trajectory, but we are more pleased with the way in which the business has managed several significant headwinds,” said a spokesman for the company. “The unprecedented war in Ukraine and the inflation which ensued has presented immense challenges for all food businesses.
“Our razor-sharp focus on driving efficiencies in our business, while also producing the steady stream of innovation we are best known for, ensures we are in a robust position as we look optimistically towards the future,” he added.
The product range comprises: Extra Special Truffle & Parmesan Pigs in Blankets and Extra Special Brown Butter & Spiced Rum Stuffing Wreath, Asda own brand Jingle the Reindeer Pork, Sage & Onion Rosy Noses, Cheesy Pigs in Blankets and Mini Hot Dogs, as well as new additions to Asda’s OMV range, including Roast Fillet of No Beef, Mushroom Wellington, No Turkey & Trimmings for One, No Turkey Joint with Unami Gravy, and Mushroom No Pigs in Blankets.
“The range of seasonal lines caters for all occasions during the festive period – from Christmas centrepieces and Christmas dinner accompaniments to party food essentials in both the fresh and frozen aisles,” said Barbara Mullen, product developer at Finnebrogue.