KP Snacks achieved a remarkable financial milestone in 2023, nearing £100 million in profits.
- Despite a severe cyber attack in 2022, the snack giant showed impressive resilience and recovery.
- Sales surged alongside profits, increasing significantly from the previous year.
- Strategic pricing, cost management, and sustainability initiatives were key to overcoming industry challenges.
- The company maintained and strengthened its market position in the UK.
In the financial year 2023, KP Snacks, known for brands like McCoy’s, KP Nuts, and Popchips, achieved an impressive pre-tax profit of £93.7 million. This was a marked increase from the £64.3 million reported in 2022. The surge in profits occurred despite the company facing severe challenges, notably a cyber attack in 2022, which had a significant initial impact on its operations.
Sales for KP Snacks also exhibited strong growth, reaching £626.7 million, up from £546 million in the previous year. This growth was attained amidst inflationary pressures in the supply chain, with the sector experiencing its highest levels since 2008. KP Snacks attributed its strong performance to effective pricing strategies, revenue management, and cost savings, which aided in recovering from the inflation of 2023.
The company reported that it was able to recover from the cyber attack effectively, managing to grow its share in the competitive UK market for crisps, snacks, popcorn, and nuts. KP Snacks highlighted that its gross profit margin had returned to 2021 levels, reaching 47.7% from the previous year’s 46%. This improvement was largely due to mix management, with branded products outpacing own-label growth, and efficiency improvements in manufacturing.
Further supporting their financial success were sustainability efforts, as evidenced by the elimination of over 100 tonnes of plastic packaging annually. KP Snacks’ sustainability initiatives were bolstered by investments in new flow wrap equipment, highlighting the company’s commitment to environmentally friendly practices while pursuing its financial goals.
KP Snacks successfully navigated significant challenges in 2023 to achieve substantial profit growth and market share expansion.
