Rising inflation has failed to get in the way of the British public and their cups of tea after the company behind Fairtrade brand Clipper reported record sales.
Kallo Foods, whose products also include Kallo, Whole Earth and Mrs Crimbles, has posted a turnover of £121.7m for 2023, up from £112.5m.
The Surrey-headquartered business also achieved a pre-tax profit of £6.9m for the 12 months, down from £7.8m, according to newly-filed accounts with Companies House.
Clipper owner delivers on growth and profit targets
A statement signed off by the board said: “Gross margins in 2023 have dropped from 27 per cent in 2022 to 24 per cent in 2023 due to continued widespread inflation pressures and product shortages.
“The directors expect future developments to include further top line growth accompanied by margin improvements driven by a focused strategy on core brands, waste reduction policies and agility to respond to ongoing supply chain challenges.”
It added: “Despite… inflationary pressures and the cost of living crisis for the consumer, the company has continued to deliver on growth and profit targets.”
Since 2019, the company has been owned by a consortium consisting of PAI Partners and Charles Jobson after a takeover deal which was worth around £762.2m at the time.
According to Kallo Foods’ latest accounts, the company paid out a dividend of £15m for the year, up from £10m.
Clipper was founded in 1984 by Lorraine and Mike Brehme and was one of the first companies in the UK to receive the Fairtrade Mark.
The brand was bought in 2007 by Fleming Family & Partners and then again in 2012 by Royal Wessanen for around £50m before it was then acquired by its current owner.
While the group’s UK head office is based in Surrey, Clipper has its manufacturing site in Dorset.