Frozen foods retailer Farmfoods has reported annual sales jumping by more than a fifth to almost quarter of a billion pounds but profits slumping by almost half.
Latest accounts filed at Companies House show that in 52 weeks ended December 28 the family-owned business had total sales of £721.4m, up 21.2pc on the previous year. However pre-tax profits tumbled by 44pc to £15.1m.
The drop in profits ends a run of strong results for the business based in Cumbernauld, Scotland, having posted double-digit profit growth for the three previous years.
Earlier this year, Farmfoods amazed retail industry pundits when data from market analyst Kantar Worldpanel showed it to be the fastest-growing grocer, outstripping even discounters Aldi and Lidl. Latest Kantar data, released on June 3, show that Farmfoods’ sales rose by 27.1pc in the 12 weeks to May 25, an increase beaten only by Aldi.
However, analysts say that Farmfoods’ relatively small scale compared to retail giants such as Tesco and Sainsbury’s can cause its sales figures to be volatile.
Farmfoods’ accounts show that during the year staff numbers rose by nearly a third to 3,891, helping drive its wages bill up by 46.5pc £57.3m, with the company actively looking for new sites to grow its estate which has expanded since the business was founded in 1955 to about 300 outlets.
The results also highlighted energy costs as a principal risk to the business, with the cost of powering stores’ freezers a concern to the company.
Farmfoods said it “consumes significant levels of electricity” but places “great importance” on energy efficiency and is introducing technology so it consumes less power. The business also runs a “save it” campaign to cut power consumption.

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