Fentimans has reported a pre-tax loss of £655,708 for the year ending December 31. The Northumberland-based company attributed the loss primarily to unfavourable summer weather and the ongoing cost-of-living crisis, which have adversely affected sales.
Despite a robust performance during the Christmas period, the overall annual turnover fell from £42.1m to £38.9m. The last time Fentimans recorded a pre-tax loss was in 2019.
The poor summer weather coupled with the ongoing cost-of-living crisis have had a detrimental impact on Fentimans’ sales. The Northumberland-based company reported a pre-tax loss of £655,708 for the year ending December 31, reflecting a stark contrast to the pre-tax profit of £604,271 achieved in 2022.
Overall, the company’s turnover decreased from £42.1m to £38.9m. Notably, UK sales during the Christmas period showed resilience, outperforming the previous year’s figures and mitigating the overall annual decline.
The company’s export gross sales dropped by 8.6% to £17.5m, partly due to regional weather events across Europe, a key market. Sales in other parts of the world also saw a decline, with turnover decreasing from £21.9m to £19.9m.
These conditions have exerted downward pressure on the group’s margins. The company has faced continuous pressure on input costs, which has compounded the issue.
Despite the setbacks, Fentimans remains optimistic about future growth. The board noted that the company is focusing on investing in key international markets and building a robust network of distribution partners. Progress in these areas has been made during the year.
Economic conditions in key markets such as South America and Asia have led distributors to reduce stockholding and, consequently, demand. This has further impacted the company’s export performance.
Fentimans anticipates a return to international growth as trading conditions stabilise. The company continues to focus on its long-term strategy, which involves strengthening its presence in international markets and expanding its distribution network.
The adverse weather conditions and economic challenges have undoubtedly impacted Fentimans’ financial performance for 2023. However, with strategic investments and an optimistic outlook for international growth, the company is poised to navigate through these turbulent times.
As trading conditions stabilise, Fentimans aims to rebuild its market presence and return to profitability. The focus on international markets and strengthening distribution networks remains a key part of their strategy.
