Mackie’s of Scotland, the Aberdeenshire-based ice cream producer, has posted impressive financial results for the year ending May 2024, despite operating in a challenging market environment.
The company recorded a 7.2% increase in turnover, reaching £22.3 million, while profit before tax surged by 67%, reaching £2.24 million. Additionally, Mackie’s net assets grew by 7.2%, totaling £25.8 million, marking a significant recovery after a less favorable financial year in FY2022-3, which was impacted by poor summer weather and rising costs.
Mackie’s strong performance was driven by a 10% increase in ice cream sales, with much of the growth coming from expanded distribution across the UK. The company’s ice cream products saw increased availability in major retailers such as Co-op, Morrisons, Sainsbury’s, and Tesco, helping to gain 400,000 new customers over the past year. This success has cemented Mackie’s position as the fifth most popular ice cream brand in the UK, with 8% of UK households purchasing its products, and a strong 20% of Scottish households loyal to the brand.
Managing director Stuart Common expressed satisfaction with the growth, highlighting the company’s focus on quality products and strategic market expansion. “It’s particularly encouraging to see new consumers returning as repeat buyers, which is a testament to the quality and taste of our ice cream,” he said.
Sustainability efforts have also played a significant role in Mackie’s growth. The family-owned company has invested heavily in renewable energy, with four large wind turbines, a 10-acre solar farm, and a low-carbon refrigeration system installed at its Aberdeenshire farm. These initiatives have allowed the company to produce more energy than it consumes, helping to keep costs competitive in a challenging economic landscape.
However, Mackie’s is not immune to the ongoing economic pressures facing food manufacturers. Common acknowledged the difficulties posed by unpredictable weather, particularly in the summer months, as well as rising ingredient costs. The price of cream has reached an all-time high, rising by 47% compared to the same period last year, which will likely affect the company’s margins. In addition, the global shortage of cocoa has caused chocolate prices to soar by 300%, impacting the costs of their chocolate-flavored products.
Despite these challenges, Mackie’s remains optimistic. Common emphasized the company’s long-term strategy of reinvestment in people, products, and sustainability, aiming to ensure continued growth and resilience in an evolving market.
Mackie’s is also known for being a Real Living Wage (RLW) employer, offering a profit-sharing bonus scheme to its employees. However, rising labor costs, driven by changes to National Insurance and annual hikes in the RLW, are expected to add additional pressure to the company’s financials.
Nevertheless, Mackie’s leadership remains committed to driving sustainable growth in the face of these challenges, with a focus on maintaining high-quality products and staying true to its sustainable business model.
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