Profit surged to almost £100m at KP Snacks, the maker of the likes of Mccoy’s, Hula Hoops and Terrell’s during its latest financial year.
The Slough-headquartered business, whose brands also include KP Nuts, Butterkist, Pom-Bear and Popchips, has reported a pre-tax profit of £93.7m for 2023, up from the £64.3m it achieved in 2022.
Newly-filed accounts with Companies House also show the firm’s turnover jumped from £546m to £626.7m over the same period.
As a result of its improved financial position, the company increased its dividend from £36m to £50m.
KP Snacks’ roots date back to 1853 in Rotherham. It is now owned by the German giant Intersnack Group.
It was sold to its current owner by United Biscuits at the end of 2012 for £500m.
KP Snacks hit by strikes over ‘falling’ pay
In September 2023, KP Snacks workers who were members of the Unite union took part in industrial action in a row over pay.
The union argues that the firm’s profit had risen by 275 per cent since 2018 while the average pay had fallen by 14 per cent over the same period.
A statement signed off by the board said: “2023 saw significant inflationary pressures in the supply chain, levels not seen since 2008, impacting the whole food industry.
“Pricing, mix, revenue management and cost savings supported the recovery of 2023 inflation.
“Growth was also supported by lapping the KP cyber attack in 2022, which whilst effectively managed, had a significant impact on our business last year.
“KP grew share in 2023 and continued to strengthen its branded position in the UK crisps, snacks, popcorn and nuts market.
“Gross profit margin has increased back to 2021 levels of 47.7 per cent from 46 per cent as a result of mix management with brands growing ahead of own label, the lapping of the cyber attack, cost savings from investments in our sites and brands, manufacturing efficiencies and hedging strategies delaying some inflationary pressures.
“KP Snacks has continued to make major capital investments during the year which aligns to our strategy of being responsible for generations to come alongside a record level of marketing spend to support the growth of ur brands.”