Noble Foods Group’s pre-tax profits up 30%
Noble Foods Group’s pre-tax profits have jumped some 30% to £14.8m in the year to 30 September 2012 compared with the same period in the previous year.
A lower tax liability in the year saw profits after tax also up significantly, from £3.6m in 2011 to £10.1m in 2012, despite an almost static turnover of £594m.
The directors’ report mentions the effect feed prices had on the cost of egg production and the “intensely competitive retail marketplace” made it “difficult for Noble to immediately secure the necessary price increases required to negate these cost increases”.
It adds that the firm was eventually able to pass “substantial” price rises to egg producers in 2012.
The overall growth of the free-range sector stalled during 2012, and the cage sector posted a stronger performance, says the report.
This was attributed to the shortage of wholesale eggs (due to the conventional cage ban), a reduction in supermarket promotions of free-range eggs and consumers trading down because of the economy.
Noble said its branded products were not affected by this dip, however, and the Happy Egg Co brand was now worth £75m.
Directors’ dividends this year totaled £17.3m, including pension contributions, up from £13.6m in 2011.