Pre-tax profit for the company rose to £2.1M for the year ending May 31 2017, bouncing back from a £0.8M loss last year. Authentic’s sales grew 12% to £82.4M from £73.6M.
Commenting on the results, Authentic ceo Nik Basran said: “The year was an important one for us, both in terms of delivering our long-term strategy to become the leading provider of frozen world foods in Europe, while at the same time keeping a tight control of costs.
“These results are all the more pleasing given the headwinds we faced post-Brexit – with the fall in the pound leading to higher raw material costs – as well as ongoing price pressure from customers.”
‘Headwinds we faced post-Brexit’
The past year saw Authentic complete the integration of its 16,722 metres squared factory in Dundalk, Ireland, which was originally purchased from Kraft Heinz in 2015.
The deal included a co-pack arrangement to develop the US food giant’s range of ready meals, such as Weight Watchers from Heinz in the UK and Europe.
Basran called the Dundalk acquisition transformational for the business, enabling Authentic to double its capacity in the medium term. The company was on track to deliver £100M in sales over the next 12 months, he claimed.
“While market conditions remain challenging, and the terms of the UK’s departure from the EU uncertain, we remain confident about our ability to deliver significant growth in the years ahead as we capitalise on rising demand for authentic, high quality world foods across the UK and Europe.”
‘Conditions remain challenging’
Originally a producer of Indian cuisine, Authentic has expanded its products to include a wide range of world foods, snacks and accompaniments, including products for health-conscious consumers.
It supplies own-label ranges for supermarkets, as well as producing ranges for third-party brands under licence and its own foodservice brand, The Authentic Food Co.
Meanwhile, this month saw Boparan Holdings, the parent company of 2 Sisters Food Group, report a £26M drop in operating profit in its full-year results, as it struggles with a “tough trading environment” and rising input costs.