Gateshead gluten free biscuit maker Northumbrian Fine Foods hails sales rise in pandemic

North East biscuit maker Northumbrian Fine Foods has toasted a successful year after managing to continue manufacturing sweet treats during the first year of the pandemic.

The Gateshead company makes supermarket own-label biscuits and brand products at its Team Valley base, and over the last 80-plus years has grown to become the UK’s largest gluten-free and milk-free sweet biscuit manufacturer.

The firm, which was acquired by French firm Biscuit International in 2018, has now published accounts for 2020, demonstrating how it altered its factory working systems at the start of the pandemic to keep biscuits rolling off the production line – and how increasing public biscuit consumption boosted its results.

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Sales rose 43%, from £32.3m to £46.3m, as the company sought to “pursue a strategy of growing its own products” – although it said its earnings were impacted by the pandemic, Brexit, and continued investment in the business.

Operating profit fell from £2.5m to £410,508 and accounts also showed how it took a £499,421 hit from foreign exchange losses.

Staff costs rose to £6.4m from £4.85m as workforce numbers rose from 245 to 252, and just three members of staff were furloughed during the year, with the company claiming furlough costs of £44,317.

Looking ahead to this year, it warned that it expects to see “significant cost inflation” and is talking with customers over increased costs to maintain profitability. It also said that owners Biscuit International has plans to continue to invest in the Gateshead business.

In a report within the accounts it said: “The 12 months to December 2020 was a successful period for Northumbrian Fine Foods Limited, with sales of £46.3m (2019 £32.3m) and EBITDA of £1m (2019 £3.9m).

“The earnings were negatively impacted by costs associated with Brexit, Covid interruptions and charges related to the ongoing investment costs to improve operational performance.

“During 2020 the sales slowed by 2% or £600,000. The directors believe this was negatively impacted by Covid. This reduction was offset by significant growth from selling BI sourced products which resulted in a £13m revenue growth.

“The directors are confident that sales and profits will grow by continuing to focus on growing product groups where the company has a commercial and technical advantage, namely the gluten free category, plus the introduction of group products to UK retailers.

“Biscuit international has plans to continue to invest in both the commercial organisation to aid cross selling and in the development of the NFF factory to achieve best in industry performance.”