Cereal bar maker Halo Foods is back in the black in its first year under new ownership.
The private label supplier completed a turnaround in 2017 to jump to a £361k pre-tax profit after it was sold by Finnish group Raisio to Dutch investment firm Nimbus in 2016. It is now joint owned by Nimbus and German-based food group Laurens Spethmann Holding (LSH), which bought a 45% stake in October 2017.
Sales rebounded in the year ended 31 December 2017, edging up 3% to £29.1m. Profits also completed a significant turnaround, shooting from a £3.1m operating loss for the year to £361k profit.
Rapidly improving growth had continued in 2018, Halo Foods finance director Joe Bearwood said, adding sales were up again this year. “The combination of very positive market trends and clarity of purpose is proving to work for us with year-to-date growth of 18%.”
The new owners turned losses around by cutting costs and expenses by over 8%, the company said in newly filed Companies House accounts.
“The combination of very positive market trends and clarity of purpose is proving to work for us with year-to-date growth of 18% this year-to-date,” Halo Foods finance director Joe Bearwood commented.
“We are confident in our direction and investing heavily in increasing capacity for 2019.
“The demand for healthy snacks has been increasing in adult population due to evolution of on-the-go lifestyle and availability of convenient snacking options.”
Raisio sold Halo Foods in 2016 as it drastically cut its UK business, also selling Honey Monster Puffs and The Good Grain Company brands to Brecks.
LSH makes branded and private label cereal, fruit bard and cereal bars in Germany, with the partnership expected to drive cost-saving synergies and bring in opportunities for investment.