Primafruit’s sales and profits have taken a hit in the past year following the loss of major customer Tesco.
Sales for the period from 25 April 2009 to 30 April 2010 fell to £35.4 million from £43.2m the previous year, with pre-tax profits dropping from £379,000 to £324,000.
A spokeswoman for the Fresca Group said: “We finally said goodbye to Tesco in the past financial year, but the team has worked really hard and we are working with two new retailers - The Co-operative Group and Waitrose. Both are new for us this year and it is a really exciting time.” The company has also strengthened its sales in the foodservice sector.
Although Primafruit has long been known as a stonefruit, grape and kiwifruit specialist, its changing customer base has now given it the opportunity to expand into other product lines. “We have always had these core lines, which we are continuing with, but we have added citrus and pineapple,” said the spokeswoman. “This is increasing our range and spread significantly.”
She added that being part of the Fresca Group has helped in this expansion. “There are some synergies across the business and some combined effort,” she said.
“We tend to use the knowledge in one company to complement that of another.”
The board of directors deemed the results “acceptable” given the economic downturn and exchange rate challenges.
“The company has also had to contend with the continued low value of sterling whilst its retail customers have been trying to maintain or reduce price,” they wrote in the report.
