Aberdeenshire-based
ice cream producer Mackie’s of Scotland has announced robust financial results
and continued expansion, demonstrating resilience despite challenging market
conditions.
For
the year ending May 2024, Mackie’s reported a 7.2% increase in turnover to
£22.3million and an impressive 67% rise in profit before tax to £2.24million.
The company’s net assets grew by 7.2% to £25.8million in the same period. A
poor summer and high costs the year before led to dampened results for
FY2022-3.
Mackie’s
experienced significant growth across its product lines, with ice cream sales
rising by 10%.
The
bulk of the family-owned firm’s turnover increase was driven by distribution
gains for its ice cream flavours across the UK, combined with a robust and
targeted marketing drive. Co-op, Morrisons, Sainsbury’s and Tesco stores all
stocked more of its flavours, seeing the brand gain 400,000 new UK buyers last
financial year (KantarWorldPanel).
A firm family favourite north of the border, Mackie’s was purchased by around 20% of households in Scotland, and 8% (up from 6%) of all UK households, making it the fifth most popular ice cream brand in the UK and the most popular family-owned producer (KantarWorldPanel).
Mackie’s managing director, Stuart Common, commented, “We’re always delighted to see new consumers buying Mackie’s products, but what’s been particularly encouraging is that they are becoming repeat buyers, which can only mean they are loving our classic and delicious ice cream.”
Stuart attributes Mackie’s success to its quality products, strategic market expansion and commitment to sustainability, adding: “Our sustainable initiatives, which see us renewably produce twice as much energy as we use at the farm, have stood us in good stead in recent years, allowing us to keep our offering very competitive while refusing to compromise on quality, amid rising costs across the board.”
Over the past two decades, the family farm in Aberdeenshire, where all the ice cream, ice cubes and chocolate is made, has been fitted with four large wind turbines, a 10-acre solar farm and most recently a low-carbon refrigeration system.
While the 2023-4 financial year delivered strong results, Mackie’s leadership remains mindful of challenges on the horizon. Stuart commented: “Wet and windy weather in the summer months of 2024 made for a difficult start to the year, which has been compounded by rising costs, especially cream prices.”
Since the beginning of the current financial year, the price of cream reached an all-time high, at one point it was 47% higher than the same period the previous year. Mackie’s uses fresh milk and cream in every tub, so the sharp rises in cream prices registered in the current financial year is expected to have a strong impact on the company’s margins.
A shortfall in cocoa crops in the past year has also caused this ingredient to skyrocket 300% in price compared to the previous financial year, causing havoc for chocolate manufacturers worldwide and ultimately, having an impact on the pockets of chocolate loving consumers.
Mackie’s is a Real Living Wage employer and operates a profit-sharing bonus scheme amongst its employees. Changes to the National Insurance rules and annual hikes to the RLW will add significant labour cost increases to the list of rising expense.
Despite this, and amid rising costs for food manufacturers generally, Stuart remains positive: “Our long-term strategic focus continues to be driving sustainable growth. We prioritise reinvestment in our people, products, and sustainability, aiming to ensure resilience in an evolving market.”
To find out more about Mackie’s of Scotland, please visit: www.mackies.co.uk