Investment in growth and development caused the 30% fall in profits at Asian cuisine specialist Noon Products, parent Kerry Foods has claimed.
The latest accounts from Companies House reveal pre-tax profit fell from £8.9m to £6.2m in the year ended 31 December 2014 at the supplier to Sainsbury’s, Morrisons, Waitrose and M&S.
Turnover fell 0.8% to £198.2m compared with a 3.6% increase the previous year. Operating margin decreased 130 basis points to 3.1%, following an increase of 100 basis points to 4.4% in 2013.
Frank Hayes, corporate affairs director at Kerry Foods, said the group did not comment on the performance of individual subsidiaries and it published consolidated results for its businesses across the regions.
However, he stressed that “Noon performed very well last year. The financial data reflects a good underlying performance but increased investment for the future growth of the business.”
Writing in the accounts, Kerry chief financial officer Brian Mehigan noted the future risk of fluctuating raw material costs, competition between its customers but said: “The company supports its customers’ drive for choice and market stimulation through new product development.
“We work closely with our customers and with consumers to ensure that we are aware of the trends that are occurring in the market place both positive and negative.”