Profits have almost doubled at Heinz’s UK division despite “strong competition” from competitors in its sauces and beans sectors.
The London-based arm of the American food giant has posted pre-tax profits of £191.9m for 2024, according to fresh filings submitted to Companies House, as reported by City AM.
This figure represents a substantial increase from the £104.1m recorded in 2023.
Nevertheless, whilst profits climbed, Heinz’s UK turnover fell from £967.1m to £952.7m during the same timeframe.
These UK results emerge following The Kraft Heinz Company’s announcement earlier this month regarding plans to split into two separate enterprises.
Heinz anticipating ‘challenges’ in 2025
A board statement indicated that Heinz had “delivered a solid performance” throughout the year.
It continued: “Despite a slight decline in volume (0.3 per cent) and net sales value (1.5 per cent), we’ve seen stabilisation in volumes after two years of decline due to the cost price increases to offset post-Covid cost inflation.
“This is largely due to our strategic reinvestment in pricing and marketing efforts since the second half of 2023.
“However, we faced strong competition in the sauces and beans categories which impacted our performance.
“On a positive note, our innovation plans yielded strong results, accounting for 4.5 per cent of our net sales value.
“Additionally, our away from home business grew by over four per cent compared to 2023.
“We also saw positive results in profit as we closed the year growing more than two per cent driven by operational savings in procurement and general cost reductions.”
Looking ahead, Heinz stated: “In 2025, we expect to face a few challenges given the macro-economic context.
“This is mainly due to a decline in category momentum and the delist of a few non-priority product lines from our range.
“Additionally, challenging regularity environment with implementation of extended producer responsibility will put pressure on the cost base.
“However, we’re expecting a positive trend in consumer metrics, with market share remaining stable and household penetration growing.
“This is driven by our promotional efforts in the meals range and increased media investments across our core portfolio.”
