The group behind cheese products maker Primula has seen a bump in both turnover and profits as it bounced back from a difficult trading period.
New accounts for Kavli UK, the parent of Primula Limited, show that the Gateshead firm saw turnover rise 11.7% in 2023 to come in at £47.5m. Over the same period, operating profit more than doubled to £2.5m.
The Team Valley business is part of the wider Norwegian food group Kavli, which typically feeds profits into a trust that supports a variety of good causes in Scandinavia and the UK. It is best known for its squeezy cheese brand Primula which also markets a vegan equivalent as well as a range of dips.
Read more: Greggs to launch jewellery range Go here for more North East business newsIn its accounts, the company said it had benefitted from both higher sales and an improved product mix, with investment in new equipment allowing it to manufacture and sell new products. It said that higher input and staffing costs remained a concern, but that it was continuing to invest in research and development to improve processes and its product range.
Mark Butel, MD at Kavli UK, said: “We are absolutely delighted with the strong turnover growth achieved by both Primula and Castle MacLellan in 2023, especially given the challenging market conditions we faced. Despite the economic headwinds, both businesses demonstrated exceptional resilience and dedication, working tirelessly to counteract the rising costs that continue to exert upward pressure on labour, raw materials, and packaging. This relentless effort enabled us to achieve a robust recovery in profitability.
“Looking ahead, our strategic plans are designed to not only sustain this improvement but to build upon it. Our future is bright, with significant investments planned, robust brand support for Primula cheese, and an exciting array of new products set to hit the market over the next 12 months.
“Additionally, Primula is expanding its reach through increased export activities, bringing our beloved cheese to new international markets and broadening our global footprint. These initiatives will drive continuous improvement, ensuring that Kavli remains on a path of growth and success.
“Moreover, the profits generated from these efforts will be reinvested to support good causes, both locally in the North East and across the UK. This commitment to giving back underscores our dedication to making a positive impact in our communities, reinforcing our mission to create value not just for our business, but for society as a whole.”
Kavli UK – whose headcount in 2023 remained fairly steady at 268 – received almost all of its revenues from the UK, though it reported £1.7m of sales in Europe. Earlier this year the company celebrated the 100th anniversary of Primula with the launch of a limited edition cheddar and chorizo product.
