KP snacks has gained market share in the UK crisps, nuts and snacks market, as sales volumes rose in 2024.
Revenues at KP Snacks, which owns McCoy’s, Hula Hoops and Tyrrells, rose 4.4% to £654m in the year to 28 December 2024. The growth was predominantly driven by the company’s brands, as volume increases were supplemented by price increases, and the acquisition of Whole Earth peanut butter.
The brands’ growth outpaced that of KP Snacks’ private label contracts, contributing to a bump in gross profit margins to 51.2% from 47.7% in 2023.
KP Snacks’ chief finance officer Giles Henderson said further margin gains had come through a focus on revenue management, alongside increased investments in transformation initiatives that “improved manufacturing and logistics efficiency and delivered cost savings”.
“Marketing investment remained at record levels throughout 2024 to support demand generation, and we continued to make significant capital investments to support long-term growth,” he added.
One “fantastic investment” was the acquisition of peanut butter manufacturer Whole Earth Foods in November 2024.
The acquisition knocked KP Snacks’ operating profits to £89.4m from £97.3m, thanks to a writedown in the value of the brand on acquisition as a portion of the cashflow benefits of the acquisition will go to KP Snacks’ parent company, Intersnack.
Excluding the one-off charge, operating profit was in growth.
Henderson said the company had also made “strong progress” against its People & Planet responsible business targets, including reducing packaging, expanding its ‘better for you’ range and helping people get active through the brand’s cricket partnership.
While KP Snacks’ total carbon emissions grew slightly in the year, to 30.5 tonnes of CO2 equivalent, the company achieved a slight reduction in the amount of emissions produced per tonne of product sold.
“We continue to invest and we remain committed to progressing our SBTi and other sustainability targets across our operations and supply chain to support our long-term ambition of being responsible for generations to come,” Henderson said.
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