News Column

Mackie's profit fall down to adverse weather

February 28, 2014

GREIG CAMERON; GREIG CAMERON

A FALL in turnover and profit at Mackie's has been attributed to poor weather conditions affecting ice-cream sales.

In its latest annual accounts the Aberdeenshire firm said its ice- cream volumes had fallen 15% as a result of the wet summer in 2012.

The ice cream division recorded turnover of almost pound(s)9.3 million in the 12 months to May 31, 2013, but that was lower than the pound(s)10.4m from the previous year.

Farming revenue improved from pound(s)454,000 to almost pound(s)508,000 while wind turbines was steady at pound(s)518,167.

According to the accounts the turnover from the company's joint venture crisp business was down from more than pound(s)120,000 to just short of pound(s)29,000.

In total, turnover dropped by 11% from pound(s)11.5m to pound(s)10.3m.

Along with the lower sales family owned Mackie's also had to cope with higher ingredient costs and it highlighted a 40% increase in cream prices.

Operating profit for the 2013 financial year came in at pound(s)244,761, compared to pound(s)391,000 in the previous year.

Writing in the accounts the directors said: "Production efficiencies and accurate stock planning enabled manufacturing costs to be controlled in line with sales volume and helped cushion the impact of ingredient cost increases."

The directors signalled the hot summer weather of 2013 had resulted in improved ice cream sales in the current trading year but warned retailers were still reluctant to accept price increases.


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Source: Herald, The (Scotland)


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