British tea brand Twinings brewed up a profit of almost £100m during its latest financial year, it has been revealed.
For the 12 months to August 31, 2023, the London-headquartered business posted a pre-tax profit of £95m, up from £85.6m.
Its revenue also increased from £221.5m to £226.7m over the same period, according to newly-filed accounts with Companies House.
Twinings is owned by Associated British Foods which is listed on the London Stock Exchange.
However, the owner of Primark does not report the individual financial performance of Twinings in its group results.
A statement signed off by the board said: “Revenue has increased year on year by two per cent with higher domestic sales and royalty income being marginally offset by a minor decline in export sales.
“Growth in the domestic market is driven by higher prices, revised promotion plans and continued recovery of the out of home market.
Twinings is headquartered in London. (Photo by Matthew Lloyd/Getty Images)
“Grocery volumes have declined (mitigating the price market) which is reflective of wider market trends.
“Operating profit is down two per cent year on year. Despite increased sales, input costs have also increased and there has been increased investment for future growth in both advertising and promotion in key export markets and in the company’s project, which will upgrade our systems and processes and lead to benefits in future years.
“Profit after tax is higher due to increased interest on loan balances with group companies.”
Twinings’ UK revenue increased from £101.2m to £106.6m while its takings from royalties went from £31.8m to £33.5m.
However, its export sales dell slightly from £88.4m to £86.5m in the year.
The competition
Last month, City A.M. reported that the owner of Yorkshire Tea brewed up sales of almost £300m during its latest financial year.
The Betty’s & Taylors Group posted a turnover of £295.7m for the year to October 31, 2023, up from £260.5m.
The Harrogate-headquartered group’s pre-tax profits also rose from £9.8m to £12.9m over the same period.
Yorkshire Tea is made by Taylors of Harrogate, which forms part of the group alongside five Betty’s Cafe Tea Rooms, a craft bakery, Betty’s Cookery School and Betty’s by Post.
Rising inflation also 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.
Twinings also has the world’s oldest continually used brand logo. (Photo by Matthew Lloyd/Getty Images)
Associated British Foods
For its latest full year, Associated British Foods posted a group revenue of £19.7bn, up from £16.9bn, and a pre-tax profit of £1.3bn, a rise from £1bn.
For its half-year to March 2, 2024, ABF’s revenue grew from £9.5bn to £9.7bn while its pre-tax profit surged from £644m to £881m.
It also raised its dividend following the strong set of results, thanks in part to a Rita Ora-driven campaign for Primark.
At the time, chief executive George Weston said: “This is a very strong set of financial results, as we are now benefitting from the restoration of some normality in our markets and in our supply chains.
“Improvements to the group’s operational performance, driven by the investments and strong execution over the last few years, are now becoming visible.
“Group profit margins are recovering accordingly to more normal levels.”