McCain sees pre-tax profits rise despite sales dip

By Michelle Perrett

- Last updated on GMT

Related tags: French fries

McCain Foods sees pre-tax profits rise despite sales fall
Chip producer McCain Foods GB has seen pre-tax profits for the full year hit almost £64M, up from £54.7M in 2014.

The food manufacturer’s results for the year ending June 30 2015, which were filed at Companies House, also showed that turnover fell to £440M from £445M.

The group, which operates across foodservice and retail, said that while there was a “marginal reduction” ​in sales revenues it focused on selling higher margin products.

The company also said it made “significant investments”​ in the brand during the year, supported by new media advertising.

‘Sluggish start’

 “A strong potato crop ensured virtually 100% British supply for the year and despite competitive pressure from European producers fuelled by cheap potatoes and the weak euro, sales volumes strengthened throughout the year after a sluggish start brought on by the hot summer in 2014,”​ it said.

McCain said its strategy is to maintain its brand leadership in frozen potato products. It acknowledged its dependence on a continual supply of raw materials namely potatoes, vegetable oils and packaging.

It said: “This risk is mitigated by contracting a portion of our supplies as far advanced as is practical and by having multiple supply sources to cover any shortfalls from individual suppliers.”

McCain Foods GB is part of the McCain Foods Group, founded in 1957 by the McCain brothers in Florenceville, Canada.

17,000 people

The business has grown significantly over the years, from 30 employees and global sales of CDN$150,000, to now employing more than 17,000 people with global sales of CDN$7bn.

McCain created the first ever frozen chip and now makes one third of all the frozen French fries produced in the world.

It is still family owned and has 41 production facilities across six continents, with four of those being in the UK.

McCain is primarily a frozen foods company, which also makes dehydrated potato products such as potato flakes (instant mashed potatoes) and potato granules in several facilities around the world.

McCain Foods GB – results at a glance

  • Pre-tax profits for the full year hit almost £64M, up from £54.7M in 2014
  • Turnover fell to £440M from £445M
  • “Significant ​[brand] investments”​ revealed

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