UK confectioner and snack maker Zetar has booked an increase in first-half profits, despite rising raw material costs and an “uncertain consumer market”.
For the six months to the end of October, pre-tax profits climbed 10% to GBP2.4m (US$3.8m), the company said today (25 January). Adjusted EBITDA rose 3% to GBP4m.
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Turnover increased 6% to reach GBP60.3m.
Zetar said the progression in financial performance during the period was underpinned by the confectionery division, which realised a GBP0.9m increase in operating profit to GBP2.3m. Sales in the division climbed 11% to GBP36.6m.
Profits in the snack division however, slid 54% to GBP0.6m, while sales dropped 1% to GBP23.7m.
Despite this, the company said it was pleased to deliver profit before tax ahead of last year.
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By GlobalData“This is particularly good in view of rising raw material costs impacting our snacks business, and demonstrates the value of the business’s continued focus on innovation and product development,” chief executive Ian Blackburn said.
Looking ahead, Zetar said it expects full-year earnings to be in line with market expectations. The firm is also “evaluating a number of small acquisitions in the UK”.
Zetar shares slid 0.4% to 219.00 pence at 08:04 GMT today.
