Produce Investments, the UK potato firm that supplies companies including Tesco and Marks and Spencer, has reported higher annual profits.
The company booked pre-tax profit of GBP7.6m for the year to 29 June, up from GBP6m a year earlier. Earnings per share stood at 28.6p, compared to 24.75p a year earlier.
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Revenue increased by more than a third to GBP206m. The wet weather in the UK in 2012 hit the potato crop and Produce Investments, which also supplies manufacturers including Bakkavor, was able to secure higher prices.
“The growing season of 2012 was one of the worst ever recorded with many areas of the UK recording record rainfall figures. The impact these conditions had on the potato crop was extreme and as a result the UK potato crop was the lowest yielding and poorest quality for nearly 40 years,” CEO Angus Armstrong said. “The group had to import greater quantities of crop to fulfil its sales obligations. This resulted in additional procurement costs which impacted results in the year, particularly in the first half, due to the inevitable delay in achieving increased selling prices. I am pleased to report a significant and necessary improvement in performance for the second half year.”
Armstrong added Produce Investments’ brand Greenvale Farm Fresh, launched a year ago, “continues to gain momentum”.
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By GlobalData
