mackie's ice cream npd

Growth in chocolate bar sales as well as exports to the Far East helped ice cream maker Mackie’s grow sales, but mounting input costs have hit profits at the Scottish confectionery firm.

Mackie’s of Scotland has reported annual turnover of £12.2m in the year to 31 May 2017, an overall rise of 1% despite a 2% decline in ice cream and ice cube sales as mounting commodity costs delayed marketing.

Sales of its burgeoning chocolate bar range almost doubled while exports growth included a 19% boost to sales to the Far East. However, overall costs rose 4%, largely due to the cost of cream rising about 250%.

Although Mackie’s said it was cushioned from dairy hikes by producing almost all the milk it needs from its herd, it still buys considerable extra cream, which hit earnings. Operating profits fell 13.8% to £1.1m and pre-tax profits 22.3% to £1.16m, exacerbated by a £250k profit in asset sales in 2016.

Mackie’s said total revenues since year end were up 4% year on year after a “strong” summer, but pressure on margin remained. It has invested close to £500k in new equipment and its new ice cream parlour in Aberdeen.