Suntory Beverage & Food GB&I has once again demonstrated its resilience and strategic acumen by reporting a seventh consecutive year of profit increase, despite significant inflationary pressures. According to newly filed accounts with Companies House, the company posted a pre-tax profit of £109.1m for 2023, up from £100.7m in 2022. The UK-based division, renowned for its popular beverages, including Lucozade and Ribena, shows no signs of slowing down as it navigates the complexities of the current economic landscape.
The Uxbridge-headquartered division has not faced a drop in pre-tax profit since 2016, underscoring its robust financial health. Turnover also experienced an uptick, rising from £517.5m to £542.9m in 2023, marking three consecutive years of growth. The company’s UK revenue increased from £484.2m to £504.2m, while its European sales surged from £32.1m to £37.5m. In contrast, revenue in Asia remained unchanged at £1.1m.
Despite the challenges posed by inflation, gross profit saw a rise from £257m to £262m. However, the gross profit margin dipped from 50% to 48% due to inflationary pressures. Administrative costs were effectively reduced from £120m to £116m through targeted cost-saving measures, resulting in an operating profit increase from £97m to £107m.
In a board-approved statement, the company reaffirmed its commitment to a long-term revenue strategy and inflation mitigation. Emphasising the importance of adapting to consumer needs, the company stated: “The company has a continued focus on the long-term revenue strategy and inflation mitigation to ensure the company continues meeting the changes in consumer needs.”
The statement further highlighted efforts to enhance operational efficiency at its Coleford manufacturing site, along with strengthening key customer and supplier relationships. The company’s focus on brand positioning and new marketing activities, including distribution and brand development, were also noted as significant contributors to its success.
Acknowledging the challenging economic environment, the company remarked: “These results and activities have been accomplished against tough economic circumstances as a result of unprecedented inflation.”
Suntory Beverage & Food GB&I, part of the esteemed Suntory Holdings group from Japan, benefits from a rich legacy in the beverage industry. Established in 1899, Suntory Holdings is one of Japan’s oldest and most respected entities in the alcoholic beverage sector. This historical foundation provides an additional layer of stability and expertise, enabling Suntory Beverage & Food GB&I to navigate the current economic challenges effectively.
Suntory Beverage & Food GB&I’s performance in 2023 underscores its strategic resilience and operational efficiency amidst inflationary challenges. With a robust financial health, continuous growth in turnover and revenue, and a steadfast focus on long-term strategies, the company is well-positioned to maintain its upward trajectory in the coming years.