The firm behind popular spread brands Flora and I Can’t Believe It’s Not Butter has declared a substantial dividend of £90m – marking its first since being acquired by the private equity behemoth KKR.
The American-headquartered conglomerate, which purchased Flora Food Group – previously known as Upfield – from Unilever for upwards of $8bn in 2017, has received this financial injection through a dividend for the spreads manufacturer’s most recent fiscal year, as reported by City AM.
This payout represents the inaugural dividend for the UK division of Flora following its takeover by KKR, with the broader company based in Amsterdam.
Newly filed accounts for Flora’s latest financial year reveal a slight decrease in turnover, dropping from £242.6m to £222.7m in 2024.
According to the documents submitted to Companies House, the company also saw a dip in pre-tax profits, falling from £18m to £16.9m during the same period.
The London-based group, which also owns the Stork margarine brand, is looking towards a resurgence in sales growth.
Flora eyeing return to sales growth
In a board-approved statement, Flora commented: “The directors consider that, in the conditions prevailing during the year, the development of the company’s business and its financial position at the end of the year was satisfactory.”
They further stated: “The directors do not expect any development in the company’s business in the coming year which is significantly different from its present activities.”
Looking ahead, Flora expressed confidence in maintaining its status as the premier plant-based spreads company in the UK.
“We expect net sales to grow moderately and profitability to stay at the same margin.”
“The company continues to operate as a going concern.”
“The company is in a net asset position and expects to remain so for the foreseeable future.”
In October 2023, the group revealed plans to ensure all Flora Buttery products are vegan-friendly, following a recipe change three years earlier that introduced buttermilk. Prior to this, Flora had been a plant-based brand since its inception in 1965.
