Aberdeenshire ice cream firm Mackie’s has seen a rise in profits but is warning of “challenging market conditions”.
Turnover at the family firm rose from £20.8 million to £22.3m last financial year.
Mackie’s sold more than 14.3 million litres of ice cream, with Co-op, Morrisons, Sainsbury’s and Tesco store deals earning them 400,000 new UK buyers.
Pre-tax profits rose 67% to £2.2m for the year ending May 2024, from £1.3m in 2023.
However, managing director Stuart Common has warned “wet and windy weather” and rising ingredient costs has already led to a “difficult start” during the summer last year.
Increasing costs
Meanwhile, the price of cream reached an all-time high in 2024. At one point it was 47% higher than the same period the previous year.
Mackie’s, which employs 110 people, uses fresh milk and cream in every tub, so the sharp rises in cream prices registered in the current financial year is expected to have a strong impact on the company’s margins.
A shortfall in cocoa crops in the past year has also caused this ingredient to skyrocket 300% in price compared to the previous financial year.
Stuart said: “Wet and windy weather in the summer months of 2024 made for a difficult start to the year, which has been compounded by rising costs, especially cream prices.
“Our long-term strategic focus continues to be driving sustainable growth. We prioritise reinvestment in our people, products, and sustainability, aiming to ensure resilience in an evolving market.”
The firm also added changes to the National Insurance rules and annual hikes to the real living wage will add significant labour cost increases to the list of rising expense.
Ice cream attracting new customers
Mackie’s experienced significant growth across its product lines, with ice cream sales rising by 10%.
It was purchased by around 20% of households in Scotland.
Stuart said: “We’re always delighted to see new consumers buying Mackie’s products, but what’s been particularly encouraging is that they are becoming repeat buyers, which can only mean they are loving our classic and delicious ice cream.”
The fourth generation family farm, Westertown, near Rothienorman, is powered by renewable energy and started making ice cream – using milk and dairy from its own herd – in 1986.
Stuart said: “Our sustainable initiatives, which see us renewably produce twice as much energy as we use at the farm, have stood us in good stead in recent years, allowing us to keep our offering very competitive while refusing to compromise on quality, amid rising costs across the board.”
Conversation