Aberdeen’s John Ross Jr, a salmon producer rooted in the city’s fishing heritage, has reported a dip in profits as consumers tighten their belts.
Newly filed accounts show the company’s turnover fell to £10.7 million in the year to June 30 2024, compared to £11.4m the previous year.
Pre-tax profits also fell from £520,000 to £420,000 over the same period.
Chief executive Christopher Leigh put the decline in sales down to the “ongoing cost-of-living crisis” and elevated salmon prices.
John Ross Jr prices stabilise at ‘new normal’
Consumers are tightening their belts, leading to a decrease in demand, Mr Leigh explained in the company’s strategic report.
He added: “Reduced consumer spending has impacted total sales volume, though no major markets have been lost – rather all key markets are purchasing slightly less.
“Despite these challenges, the market has largely stabilized at a higher price point, creating a ‘new normal’.”
Mr Leigh highlighted the company, which was granted a new Royal Warrant by King Charles III in January, had passed some of the price increases to customers.
Meanwhile, key strategic moves, such as renegotiating supplier contracts and streamlining internal operations, have resulted in significant cost savings.
Mr Leigh said this allows the company to stay resilient amid market pressures.
However, some challenges persist, including slow improvements in air freight rates, affecting the volume of salmon shipments to certain territories.
Optimistic outlook for future
John Ross Jr’s iconic red-brick kilns, dating back to 1857, continue to be used for smoking the company’s salmon.
These kilns have been listed by Historic Scotland for their cultural significance.
Mr Leigh’s father, Andrew Leigh, founded John Ross Jr in 1987, taking the smokehouse and its historic kilns into a new era.
Now part of the Estonian-registered AS PRFoods group, John Ross Jr specializes in processing premium salmon into a range of raw fillets, smoked, and ready-to-eat products.
The company’s approach is driven by a dedicated team of 70 employees many of whom have been with the company for decades.
Looking ahead, Mr Leigh said John Ross Jr is optimistic about its future supplying customers in the UK and worldwide.
He said a comprehensive strategic commercial plan is in place to improve performance.
“By refining pricing strategies, optimizing supply chain efficiencies, and strengthening relationships with customers and suppliers, the business is well-positioned for sustained growth and profitability in an evolving market landscape,” he added.
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