Profit at Swizzels Matlow, the maker of sweets such as Love Hearts and Refreshers, was slashed in half during its latest financial year despite its sales jumping to almost £100m.
The Peak District-headquartered business has reported a pre-tax profit of £4.4m for 2023, down from the £8.2m it achieved in 2022.
Newly-filed accounts with Companies House also show that Swizzels Matlow’s turnover increased over the same period from £89.3m to £96.6m.
The firm’s UK turnover rose from £76.6m to £80.8m in the year while its sales in Europe also grew from £10.1m to £13.2m.
Its sales in the rest of the world remained static at £2.6m.
During the year the average number of people employed by Swizzels Matlow rose from 561 to 578.
The results come after the group completed construction of a new manufacturing and warehouse site in Middlewich, Cheshire, in the year.
Swizzels Matlow said that the new site is “anticipated to significantly increase production capacity”.
A statement signed off by the board said: “The group continues to invest heavily in new equipment in order to improve efficiency and product quality.”
Swizzels Matlow settles with M&S
During the year the company reached a settlement with M&S after it was accused of copying its Percy Pig sweets.
As a result of the “amicable resolution”, Swizzels Matlow agreed to change the design of its Pigs Mugs sweets.
M&S first claimed in November 2022 that the sweets were too alike to its own.
According to a 37-page document filed at the High Court in London at the time, the Percy Pig brand had generated a £131.7m in turnover since its launch in 1993.
Swizzels Matlow was founded in 1928 while it also makes the likes of Drumstick lollies and Parma Violets.