KP Snacks has achieved a nearly £100 million profit in 2023, overcoming significant industry challenges.
- Despite a cyber attack in 2022, the company reported a substantial rise in profits.
- Sales increased significantly, showcasing the company’s resilience in a tough market.
- The recovery was supported by strategic measures including cost savings and revenue management.
- Sustainability efforts were also a focus, with significant reductions in plastic usage.
KP Snacks, renowned for its portfolio including brands such as Mccoy’s, Terrell’s, KP Nuts, and Popchips, demonstrated remarkable financial resilience in 2023. The company reported a pre-tax profit of £93.7 million, a notable increase from £64.3 million in the previous year. This achievement is significant, especially in light of the challenges posed by a cyber attack in 2022, which had a profound impact on the business.
Sales figures echoed this upward trend, with a jump to £626.7 million from £546 million. This growth trajectory indicates KP Snacks’ ability to adapt and thrive despite facing inflationary pressures not seen since 2008, which have broadly affected the food industry. In response, the company employed strategic pricing, revenue management, and cost-saving measures to mitigate these pressures.
A key aspect of KP Snacks’ recovery and growth was effectively managing the aftermath of the 2022 cyber attack. While the attack had a notable impact, the company’s response strategies have not only helped in recovery but also contributed to the growth of its branded products’ market share in the UK crisps, snacks, popcorn, and nuts sector.
The company’s gross profit margin saw an improvement, rising back to 2021 levels of 47.7% from 46% through strategic brand management, manufacturing efficiencies, and hedging strategies. These efforts allowed the company to delay certain inflationary impacts, showcasing financial acumen in a challenging economic landscape.
In addition to financial successes, KP Snacks made strides in sustainability, reducing plastic packaging by over 100 tonnes annually. This move was supported by investments in new flow wrap technology, indicating a forward-thinking approach to environmental responsibility.
KP Snacks has shown exceptional resilience and strategic foresight, achieving substantial profits despite challenging conditions.
