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Bread Maker McCambridge: Rising Profits Amidst Growing Costs

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Bread maker McCambridge has experienced a notable increase in its pre-tax profits, despite facing growing costs. The company’s profits rose by 12% to €1.52m in the past year, while revenues surged by 19% to €12.49m.

This growth in revenue can be attributed to price hikes across its product range, which were implemented to offset the rising costs of core ingredients. Although staff costs remained the same, directors’ pay saw a slight increase.

The majority of the company’s revenues were generated in Ireland, with a minimal amount coming from outside the country. McCambridge faced challenges due to Brexit, which impacted the supply of goods and importation of raw materials. Additionally, the directors expressed concerns about supporting an RTÉ live show.

Despite these challenges, McCambridge managed to achieve rising profits.

Financial Performance

The financial performance of bread maker McCambridge improved with a 12% increase in pre-tax profits to €1.52m and a 19% surge in revenues to €12.49m, primarily driven by price increases to offset rising costs of core ingredients.

The company’s staff costs remained stable at €2.11m, while directors’ pay saw a marginal increase from €270,739 to €274,848.

McCambridge UC generated €11.65m in revenues from its own products and €837,808 from ‘own label brands’. The majority of revenues, amounting to €12.38m, were generated within Ireland, with only €105,627 coming from outside the country.

The cost of sales increased by €1.7m to €7.23m, while administrative costs rose from €2.7m to €2.8m.

After paying €208,139 in corporation tax, the company recorded post-tax profits of €1.32m.

Shareholder funds at the end of August totaled €6.9m, including accumulated profits of €6.65m.

Revenue Growth

Revenues experienced a notable increase of 19% in the 12 months to August, primarily driven by price adjustments across the product range to counterbalance the rising costs of core ingredients. The company recorded a total revenue of €12.49m, compared to €10.47m in the previous year.

Of the total revenue, €11.65m was generated from McCambridge products, while €837,808 came from ‘own label brands’. The majority of revenues, amounting to €12.38m, were generated within Ireland, with only €105,627 coming from outside the country.

The increase in revenue contributed to the company’s pre-tax profit growth of 12%, reaching €1.52m. Despite the positive revenue growth, the directors expressed concerns about the economic impact of Brexit and the challenges it poses to the supply of goods and importation of raw materials.

Challenges and Concerns

Challenges and concerns arise as the directors of the company express apprehensions regarding the economic impact of Brexit and its effect on the supply chain and importation of raw materials.

The directors acknowledge the ongoing challenges posed by Brexit, which continue to affect the company’s ability to source goods and import necessary raw materials. This has led to uncertainties in the supply chain, potentially disrupting the production process and increasing costs.

Additionally, the directors mention the impact of fuel and energy prices, with the cost of diesel reaching €2 per litre in early 2022. These rising costs pose further challenges for the company, potentially impacting profitability.

Furthermore, the directors express reservations about supporting an RTÉ live show following the ‘Toy Show Musical fiasco’, highlighting the importance of carefully considering business partnerships and potential reputational risks.

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Aiden
Aiden
Aiden is a skilled writer who has found his calling as a journalist 2 years ago. With a passion for storytelling and a keen eye for detail, he has quickly made a name for himself in the industry. Aiden's articles are well-written and informative, and he takes great pride in his work. He has a knack for finding the most interesting angles on any story, and his writing is always engaging and thought-provoking. In his free time, Aiden enjoys reading, hiking, and spending time with his family.

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