Flora Food Group has returned to growth in the UK, as it offset falling volumes with higher pricing.
Revenue at the Bertolli and I Can’t Believe It’s Not Butter owner’s UK arm grew 5.4% to £234.7m in the year to 31 December 2025.
However, a 7.3% increase in the company’s cost of sales weighed on profits, pushing gross profit margin down 1.5 percentage points to 11.3%. Gross profit for the year was down 6.5% to £26.6m.
While Flora managed to win a 5% bump to operating profits as it slashed advertising and promotional spend, pre-tax profits fell £5.8m to £11.1m.
The return to growth represents a reprieve for Flora, after a tough 2024 when revenue fell 8.2%. The company’s Netherlands-based parent, Flora Food Group, has averaged 2.5% sales growth over the past four years.
Flora Food Group’s UK&I country manager, Javier Botella, told The Grocer the UK results demonstrated the power of the group’s “culinary essentials” proposition, the strength of its brands, and the “overall resilience” of the business.
“Our focus on operational discipline and portfolio strength enabled us to absorb headwinds while continuing to invest in our brands.
“We entered 2026 with momentum across our core categories – spreads, creams, sauces and cheeses – and a clear plan to get our products into the shopping baskets and homes of more hard-working consumers across the country.”
Higher pricing meant the group was able to protect its revenues, despite a severe category-wide decline in volumes.
Nine of the top 10 butter, spreads and margarine brands are in volume decline, according to NIQ statistics for the year to 22 February 2026.
The Flora brand sold 4.1% fewer units in that period, with Flora ProActiv down 7.9%, Bertolli down 12.4% and I Can’t Believe It’s Not Butter volumes down by 15.1%.
Last month, the Financial Times reported that Flora Food Group’s owner, private equity firm KKR, was exploring a sale of the group – eight years after it bought it from Unilever as Upfield Dairy.
No comments yet