Profit at biscuit maker Tunnock’s quadrupled during its latest financial year despite the cocoa crisis in Africa.
The Scottish confectionary business, which is headed up by Sir Boyd Tunnock, has reported a pre-tax profit of £4m for the 12 months to 24 February, 2024, according to newly-filed accounts with Companies House.
The latest figure comes after Tunnock’s posted a pre-tax profit of £1m in the prior year.
Despite the rise, the £4m profit is lower than the £5.4m it achieved in the year to 26 February, 2022.
The results also show that Tunnock’s achieved a turnover of £87m in its latest financial period, up from £75.8m.
The business can trace its roots back more than 130 years and is headquartered in Eddington, Scotland. Sir Boyd is the grandson of Thomas, the founder.
Among its products are teacakes, caramel wafer, snowballs and wafer cream.
Tunnock’s, like other confectionary companies, has been battling with the rising cost of chocolate after changing climate patterns have hit cocoa supplies in west Africa.
Earlier this year, seasonal dusty winds from the Sahara blocked out the sunlight needed for cocoa bean pods to grow in Ghana, the Ivory Coast, Nigeria and Cameroon where around three-quarters of the world’s cocoa is produced.
In the prior season, heavy rainfall spread a rotting disease among the cacao trees. These trees produce cocoa, the main ingredient in chocolate.
In its latest results, Tunnock’s said its gross profit percentage grew from 25.4 per cent to 26.7 per cent, below the prior year’s figure “due to significant increases in raw material costs” following the invasion of Ukraine and the more recent cocoa crisis.
Tunnock’s added: “These raw material costs increases are very challenging and continued to impact the company’s financial performance after the year end.”