Samworth Brothers: Profit slashed despite price rises at Ginsters owner

Sales at Samworth Brothers, the food giant that owns the likes of Soreen, West Cornwall Pasty Co and Ginsters, passed £1.5bn as its raised prices for its customers in 2023, it has been revealed.

The Leicestershire-headquartered group said inflation through its supply chain pushed prices for customers up, “despite our significant efforts to mitigate these very material increases in input costs”.

Samworth Brothers added that the rise in its turnover was also as a result of new business wins as well as a strong Christmas trading period.

Newly-filed accounts with Companies House have also revealed that the group’s pre-tax profit was slashed as a result of its decision to close Revolution Kitchen in October 2023.

The group suffered a £22.5m hit because of the move after said the brand made “significant losses” in the previous three years and there was “no prospect of a return to profitability in the near future”.

The accounts for Samworth Brothers, whose brands also include Melton Mowbray pork pie maker Dickinson & Morris and Urban Eat, show its turnover increase from £1.4bn to £1.5bn in 2023.

Its pre-tax profit was also cut from £20.4m to £5.6m in the year.

Samworth Brothers focusing on ‘operational efficiencies’

A statement signed off by the board said: “Gross margins, which had suffered significantly through Covid and during the period of significant cost inflation that followed, increased from 16.9 per cent to 17.6 per cent but are still significantly short of the 18.4 per cent achieved in 2019.

“Given the need for further focus in this area, as well as to mitigate cost inflation for our customers and consumer, the group continues to focus on creating operational efficiencies across our supply chain.

“In parallel we are investing ever greater sums in more effective capital equipment to improve reliability and drive efficiency in the coming years.”

The company’s UK turnover increased from £1.3bn to £1.5bn in the year and from £45.1m to £46.7m in Europe. Its sales in the rest of the world were cut from £436,000 to £42,000.

During the year the average number of people employed by the group increased from 10,177 to 10,819.

On its future, Samworth Brothers added: “The group expects a challenging year; there will be further input cost and wage inflation and we expect consumer spending to continue to be impacted by the cost of living situation.

“However, the directors are optimistic about the future and we will continue to invest in the business.”