Zetar has published a double-digit drop in full-year pre-tax profits after a disappointing Easter and a strategic decision to exit low-margin snack business.

The confectionery and snacks supplier said profits were down 17.5% to £5.5m for the year to 30 April. Meanwhile, group sales dropped by 5% to £128m.

But the recent performance had been more encouraging, the company said. In the first 11 weeks of the current financial year, sales were up 16% to £19.9m, boosted by £1.5m of Olympic gifting sales.

“After a challenging year that culminated in major retailers understocking for Easter, the outlook for next year is more positive,” said Liberum analyst Patrick Coffey.

Zetar said it had made good progress increasing sales of branded and everyday products. It recently launched Guinness and Tango products under new licences.

“We are optimistic about the new financial year following recent significant new everyday product wins,” said Zetar chief executive Ian Blackburn.