The maker of alcoholic drinks such as VK and Hooch saw its profit slashed as its costs surged despite the group raising prices.
Global Brands, which is headquartered in Derbyshire, has reported a pre-tax profit of £1.5m for the year to September 30, 2023, down from £6.3m, while its turnover also fell from £92.4m to £82.9m over the same period.
As well as VK and Hooch, the group’s brands include Franklin & Sons, Be, All Shook Up, Shake Baby Shake, Beviamo, Kick Energy Drink, Lustre, Amigos Tequila Beer, Take Tequila, Corky’s, Mango Go, Hoopers, Jungfrau, Reef and Teichenne.
Also owns the Case Hotel in Chesterfield and Peak Edge Hotel on the outskirts of the town. The group also has a residential property development arm.
A statement signed off by the board said: “The economic climate has been challenging for everyone in our sector over the past 12 months.
“Inflation peaking at 11.1 per cent in October 2022 and interest rates continually rising during our financial year to 5.25 per cent.
“Cost pressures in the business resulted in a price increase in October 2022 followed by a second price increase in February 2023; energy prices were responsible for the major increase in glass.
“We saw increases across all our major materials and packaging which we started to recover in the second half of the financial year.
“Second half of the year trading was stronger although the poor summer didn’t help sales.
“Our export business had another good year and now accounts for 10 per cent of the total volume.
“We trade in over 70 countries worldwide and is a key focus over the next few years.”
On its Casa Hotel, the group said it had been a “difficult trading year” for the sector and while its turnover had increased by three per cent, energy costs and the rise in the minimum wage made an impact.
The group added: “While we have increased prices during the year, there is only so much that can be passed on to customers, especially on room rates which need to remain competitive.”
Turnover at Peak Edge Hotel rose by 15 per cent helped by the weddings which were delayed because of the Covid-19 pandemic.
The group increased prices during the year on food and beverages as well as room rates.