Soft drinks and tonic water brand Fentimans fell into the red during its latest financial year after bad summer weather and the cost-of-living crisis impacted its sales.
The Northumberland-based business has reported a pre-tax loss of £655,708 for 2023, according to newly-filed accounts with Companies House.
The loss comes after Fentimans posted a pre-tax profit of £604,271 for 2022.
The last time the business fell to a pre-tax loss was the £5.1m it booked in 2019.
The new results also show that the firm’s turnover dipped from £42.1m to £38.9m in the year.
Fentimans said its performance was “heavily influenced” by poor weather during the summer and added that demand “remained suppressed” throughout the second half of the year “as the ongoing cost-of-living crisis limited consumer spending”.
However, the company added that, “reassuringly”, UK sales ended the Christmas period ahead of the prior year’s levels and ensured that the fall in its overall sales was “minimised”.
The firm’s export gross sales fell by 8.6 per cent to £17.5m, “due in part to the impact of regional weather events across Europe” – the group’s key market.
Its UK turnover dipped from £20.1m to £19m while its sales in the rest of the world also fell from £21.9m to £19.9m.
Fentimans ‘anticipates a return to growth’
A statement signed off by the board said: “The board reports a year of continued unusual challenge for the group against a backdrop of ongoing global uncertainty.
“Extreme regional weather events during the busy summer period, coupled with ongoing inflationary pressure faced across the market, has seen demand weaken – particularly in our export markets.
“Further, the group has continued to experience pressure on input costs throughout the year.
“These prevailing conditions have applied downward pressure on the group’s margins in 2023.”
Fentimans added: “Further afield, economic conditions in key markets including South America and Asia have pushed distributors to reduce stockholding and therefore, demand, during 2023.
“Despite these headwinds, the group continues to focus on investing into key international markets alongside building a strong network of distribution partners – an area in which continued progress has been made during the year.
“All other things being equal, the group anticipates a return to growth internationally going forward as trading conditions stabilise.”