Manufacturing and supply chain efficiencies plus a favourable exchange rate have boosted profits at Florette.
According to accounts released to Companies House, the salad giant, whose brand is familiar to a large number of British consumers through its strong marketing and presence on the shelves of a range of supermarkets, posted a pre-tax profit of £5.2 million for the year ending 31 December 2014, up from £4.1m in 2013, and better than 2012’s pre-tax profit of £4.8m.
Florette’s turnover for 2014 was similar to 2012’s figure of £53.4m, at £53.2m – slightly down on last year’s figure of £56.1m.
Florette MD Neil Sanderson said: “Total sales in 2014 were behind 2013 as we exited a number of non-core low-profitability activities, which along with an improved crop year, saw an improvement in profit for the UK business as a whole.”
A report accompanying the Florette accounts noted: “Despite [a reduction in turnover], manufacturing and supply chain efficiencies along with favourable exchange rates directly impacted gross profit margins, which improved significantly to 48.4 per cent.”
Elsewhere in the report, the spokesperson noted another key market decision made in 2014: “In 2012 the directors recognised an impairment charge of £1m against the value of the company’s investment in its subsidiary Salads To Go Ltd. In the current year there’s been an improvement in the trading and operational performance and following further review it is deemed that no additional impairment of this investment is required.”
On the product front, at the end of 2014 the company launched baby kale – considered to be the trendy food product of last year – into Tesco and Sainsbury’s as part of its wider campaign to add versatility to the salad category.
Florette said the product represents a “£3.3m opportunity” for the single-leaf sector, and has backed it with “massive marketing support”.
Elsewhere on the marketing front, the salad giant returned with a second burst of its fiery TV advert for PepperCress. The move formed part of its £5m investment to inspire consumers to create great-tasting salads, and included TV and digital advertising spots.
As for how Florette has started this year, Sanderson said: “2015 has started well with sales 7.9 per cent ahead of 2014 at the end of February (Nielsen YTD 2015).”
No comments yet