Foodservice leads Macphie’s sales growth
Gross profit increased slightly from 26% to 27% of sales, said the company.
Relative cost stability for the majority of raw materials and ‘significant’ capital investment and efficiency initiatives, all contributed positively to the enhanced margin position, it added, with operating profit increasing to £4.6M from £3.7M in 2015.
“It is a very positive set of results, realising our vision for profitable growth both in the UK and international operating markets,” said md Andy Underwood. “We have seen strong sales growth in all of our traditional channels with foodservice continuing to be the lead channel.
“We have also gone through a number of changes in our contract manufacturing business which will deliver additional opportunities for growth in the year ahead.”
Macphie also reported that its business in the Middle East had grown strongly and had more than compensated for continuing supressed spend in southern Europe.
And, while the economic climate remained unclear in the UK and currency fluctuations could present a challenge following the outcome of last June’s EU referendum, the company noted that this also presented an opportunity internationally.
“The results are particularly pleasing given the changes the business has gone through over the past 12 months and the economic climate, and they’re a reflection of the hard work and dedication of Macphie employees,” said chairman Alastair Macphie.
“With our strong innovation agenda, the Board will continue to support significant investment in our product development and operational capabilities to ensure we maintain profitable growth.”
