Fentimans, the soft drinks and tonic water brand, has predicted higher profits in 2025 as it returned to the black during its latest financial year despite the “ongoing challenging backdrop”.
The Northumberland-based business has reported a pre-tax profit of £1.4m for 2024, according to new accounts filed with Companies House.
The total comes after Fentimans posted a pre-tax loss of £655,708 in 2023.
Prior to 2024, the last time the business fell to a pre-tax loss was the £5.1m it booked in 2019.
The results also show that its turnover fell from £38.9m to £35.6m over its latest 12 months.
UK gross sales fell by 6.4 per cent to £20.2m in the year as demand “remained suppressed” as the ongoing cost-of-living crisis limited consumer spending.
Export gross sales also decreased by eight per cent to £16.1m “as the global cost-of-living crisis continued to weaken demand in the group’s key international markets”.
Cost cutting boosts Fentimans’ bottom line
A statement signed off by the board said: “The board is pleased to report a year of good progress for the group against an ongoing challenging backdrop.
“Whilst consumer confidence across our markets has remained low throughout the year, and demand has weakened further, the group has been able to achieve significant cost savings throughout the business in response.
“This has resulted in the group being able to rebuild its margins to a stronger level and post a much improved profit versus the previous year.”
In the year, Fentiman’s headcount decreased by 10 to 57.
On is outlook, Fentimans said: “2025 is expected to provide a more stable inflationary environment to operate within, albeit with ongoing effects of weakened consumer demand and the group is well placed to demonstrate further progress and continued profitability.
“The group plans to mitigate the continued suppressed demand across many of our markets by further expanding our distribution base globally.
“One notable development that the group must contend with in 2025 is significant regularity change in the form of the incoming Extended Producer Responsibility (EPR) legislation and Packaging Recycling Note (PRN) reform within its UK sales channel.
“This increased cost has been budgeted for and the company has plans in place to manage the increased burden.
“Notwithstanding the continued challenging backdrop, the board expects a further improvement in margins and profitability through 2025 as the positive impact of the cost saving initiatives delivered in 2024 is annualised.
“These proactive efforts over the last 12 months have resulted in improved cashflow and the board expects this improvement to continue.
“On the back of the progress achieved over the last 12 months, the board is confident it has a platform for sustainable growth and further improved profitability in 2025 and beyond.”