Calbee Group, the owner of Seabrook crisps, saw profits fall last year due to the delayed expansion of its factory in West Yorkshire.
Pre-tax profits dropped 10% to £5.9m in the year to 31 December, despite revenue rising to £71.6m from £66.4m the year before.
This was mainly due to delays on an expansion project at its factory in Bradford, as well as ongoing cost pressures, particularly on potatoes, oil and labour.
The expansion in Bradford was “the largest such project we have ever undertaken”, the company said, which would see its production capacity increase “considerably”.
But delays through the commissioning phase meant its stock levels came under “huge pressure” throughout the summer and into Christmas, and limited sales through the final few months of the year.
“In addition to damaging our ability to sell, our operating profit delivery was hampered by these commissioning issues, which drove waste losses and poor labour recovery vs norms through the period,” the company said in its accounts filed at Companies House.
The winter period is typically the most profitable for Calbee as sales demand is strong while input costs are low.
“We missed out on the opportunities Q4 generally offers, and this reflected in our disappointing operating profit performance for the year.”
Calbee said its service in Bradford was now fully recovered and it was consistently delivering in line with customer expectations.
This year, it is focused on recovering cost from the project and expects to see operating profit return to historical levels.
“As we look ahead, following a significant investment of £15m, both factories are delivering a consistent service, providing greater capacity than has ever been possible,” said a spokesperson.
“Supported by a strong pipeline of new and innovative product development, it is expected that we will deliver a further increase in sales throughout 2025, reinforcing our position as a serious challenger brand within the UK market.”
Several crisps brands struggled last year, with major brands including Walkers and Doritos seeing volumes fall.
High inflation combined with mixed results from reformulation in response to new HFSS rules, and meant total category volumes were stagnant, according to The Grocer’s Top Products Survey.
“Growth across crisps, snacks and popcorn continues to be driven by inflation,” said Claire Hooper, Calbee’s group marketing director at the time.
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