The Fresca Group has posted a significant return to profit.
The group recorded a pre-tax profit of nearly £7.4m for the most recent financial year, recovering from a loss of £395,000 in the year ending 26 April 2013.
Turnover for the Fresca Group in the 52 weeks ending 25 April 2014 was £427 million – up from £403m the previous year.
The group, which incorporates M&W Mack, Primafruit, Thanet Earth and Valefresh, also saw a further reduction in the net of £5.2 million to £1.5m.
Chris Mack, group chairman, declared himself “extremely pleased and proud” that the company posted a return to a “level of healthy profitability”, citing a clear focus on core activities as being key to the change in fortunes. He said: “Casting my mind back to this time last year, I remember well the despondency I felt around the poor financial result we recorded.
“This return to form underlines how unusual 2012/13 was for us, with our exit from the prepared fruit business bringing with it considerable exceptional cost. That painful but necessary move did mean that we could implement what we knew to be the right approach – to play to our strengths and focus on what we know we do best in our pressured marketplace.”
He added: “While most of the business continued to trade satisfactorily despite the ongoing economic pressure, the Mack Multiples business continued to be challenged in certain areas as it adapted its business model to reflect the changing retail landscape. The growth of the discount retailers along with the reduction in volumes that are being consumed has presented the group’s principal customers with a significant challenge.
“That challenge has manifested itself within the Mack Multiples business in particular with the customers trialling further direct sourcing, and also some early signs of supplier consolidation. This means that the business model has to adapt to a lower cost of supply model to match the customer aspirations and to remain competitive.”
The group’s wholesale businesses performed strongly in the year to 25 April 2014, with Mack Southampton in particular hitting the ground running at its new base, establishing a foodservice element to its trade, and expanding the cruise ship supply arm.
Bananas, after suffering from “some short-term operational control issues”, eventually returned to a level of “sustainable operational performance” during the financial year the figures – posted to companies House - cover.
Thanet Earth, meanwhile, saw its first full-year production from the fourth glasshouse on the site, and the high levels of produce being grown there is driving growth for the Fresca Group.
Going forward, Mack said: “There are still many ongoing challenges to meet, and we must remain flexible in our approach. Partnership with our growers and investment in supply has to stay a priority and a key part of our strategy for the future. It is these grower relationships which I think help to set a clear line of difference between our companies and our competition.
“I see a clear preference and a gradual drive to reduce the number of core suppliers for each product. This is a logical and sensible move for the retailers, but the Fresca businesses must be the indispensable partner in an increasingly price-driven marketplace. This will remain a fundamental challenge for me and my fellow board members this year and beyond.”
No comments yet