International Produce Ltd has reported a fourfold rise in profits as Asda increases the level of produce it buys through its direct sourcing arm.
IPL last week reported sales were up 17.3 per cent to £58.4 million in the 52 weeks to 1 January 2011, figures filed at Companies House show.
Pre-tax profits rose from £1.4m a year before to £6.1m, which the directors said “reflected increased levels of trading since the acquisition of the company by Asda in 2009”.
This was the first full set of accounts filed since Asda took up its option to buy out the business, which was a 76 per cent owned subsidiary undertaking of the Bakkavör Group.
Directors said they were “satisfied” with the results, adding: “The directors believe that the future prospects of the company are sound and consider that the business is adequately financed.”
Meanwhile, the latest Kantar Worldpanel share data reveals that Asda has held its share in the 12 weeks to 2 October at 17.1 per cent. The result means it has ended the declines of previous periods and reflects the inclusion of converted Netto stores.
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