Food manufacturer Samworth Brothers Holdings has filed its accounts for the year ended 28th December 2024, with its profits moving out of the red for the year.
The company produces savoury pastry products such as hot pies, sausage rolls and slices, as well as prepared meals and pork products, and includes brands Ginsters and Higgidy.
Turnover for the 12 months reached £1.69 billion in 2024, up from the reported 2023 turnover of £1.59 billion, with Samworth Brothers Holdings stating that its acquisition of the Real Wrap Co in April 2024 had contributed additional revenue, with the group benefitting from “new business wins”.
Gross profit for the period totalled £309 million, an increase compared to 2023’s gross profit of £279 million.
The company stated that “strong” sales growth and margin improvement had contributed to Samworth Brothers recording an operating profit before non-recurring costs of £61.6 million (up from 2023’s £42.5 million) and adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of £118.1 million. This was up from 2023’s EBITDA of £97.7 million.
Samworth Brothers commented that efficiency initiatives and a reduction in discretionary spend had improved profitability, with its net operating profit margin improving from 2.7% to 3.6%.
Operating profit was reported as £44 million for 2024, and £19.9 million for 2023, and the manufacturer said it had been able “protect and improve” its gross margin through a combination of price increases, product reformulation and operational improvements.
The company reported that a three-year investment programme will “strengthen the foundations” of the business and is spread across projects that will deliver expanded capacity, more efficient equipment and more environmentally friendly vehicles. It noted that the scale of the investment was the “principal driver” behind an increase in the group’s net debt, which has gone from £157m in 2023 to £190m at the end of 2024.
In 2023, Samworth Brothers reported a loss of £2 million for the year, but the 2024 results showed a profit of £10 million. It labelled 2024 a “successful year”, detailing that it had “navigated challenging trading conditions as further cost inflation, subdued consumer confidence and supply chain disruption” all impacted performance.
Commenting on the results Simon Wookey, chief executive officer, said: “2024 was a successful year for Samworth Brothers and we made good progress. We continue to invest and innovate, in capital ‘build’ projects plus digital and other technologies to further develop our business. The quality of our food and blending our long food heritage with food innovation to deliver for today’s consumer is another important part of our strategy.”
The company confirmed that it had secured “new business wins” across its core categories, reduced food waste and focused on labour efficiency, which it said had improved gross margin.
