McVitie’s owner Pladis has pushed revenues past the £1bn barrier in the UK, but restructuring costs weighed on the bottom line at the biscuit maker.
During 2024, guided by its ‘Compete to Win’ strategy (implemented in 2020), the group said it continued to invest in its brands, accelerate the pace of innovation, execute well in market and implement programmes to reduce the supply chain cost base and develop talent.
The accounts filed at Companies House for the year ended 31 December 2024 showed turnover up 2% to just more than £1bn. It followed a 15% jump in 2023, with sales soaring by £127m thanks to price hikes and market share gains.
Pladis added the result reflected a “strong” innovation programme throughout the year.
Mete Buyurgan, Pladis UK & Ireland managing director, said as part of the strategy of brand investment, the group delivered a “step-change” in McVitie’s sales in 2024.
He added the performance was underpinned by successful marketing campaigns and sales from NPD such as Jacob’s Bites, McVitie’s Signature range, Gold Digestives and cola bottle flavour Jaffa Cakes.
“Surpassing the £1bn sales milestone is testament to the strength of our portfolio of iconic brands and our approach to product innovation,” Buyurgan said.
Despite the rise in sales and a decrease in distribution, selling and marketing costs in the year (from £136m in 2023 to £135.5m), adjusted EBITDA edged down by £1m to £150.6m.
Pre-tax profits slipped 19% to £79m after the group logged £28m of one-off costs related to restructuring activity and writedowns at the Aintree factory, which is undergoing “a transformation” as part of the £68m investment in the UK sites announced earlier this year.
“This year we are focused on building on our momentum, celebrating 100 years of the McVitie’s Chocolate Digestive and navigating challenges of cost inflation, while executing the £68m investment across our UK operations to renovate our manufacturing sites and unlock capacity for our growth story,” Buyurgan added.
McVitie’s climbed one place to 14th in the latest rankings for The Grocer’s Britain’s Biggest Brand. However, the rise 14% rise in value sales mostly came from price as volumes for Digestives, Jaffa Cakes, Chocolate Hobnobs and Rich Tea all lost ground in 2024.
Since the start of the new financial year, Pladis has experienced significant management upheaval as CEO Salman Amin left the group with immediate effect in February, as revealed by The Grocer.
Pladis subsequently promoted UK & Ireland MD David Murray to a newly created position of global chief commercial officer, with Buyurgan taking on Murray’s former role.
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