Sales increased 30 per cent for food accompaniment producer AAK BD Foods as it reported pleasing results in a “difficult market dominated by Brexit uncertainties”.
Profits more than doubled year on year in a “challenging” 2019, up from £549,262 to £1.3 million, as turnover smashed through the £10 million mark, coming in at £11.7 million.
However, the East Sussex operation, acquired and integrated with the Hull-headquartered AAK International arm in the year it reported on, has been hit hard by the Covid-triggered lockdowns, as its mainstay, the hospitality sector, went into enforced hibernation.
Clive Barker, director at the St Leonards on Sea unit, told how it had adapted quickly with its range of sauces, salsas, chutneys, vinaigrettes and dressings, to weather the storm, in the strategic report accompanying the just-published, results.
Reviewing the calendar-aligned financial year, he said: “2019 was a challenging year in a difficult market dominated by Brexit uncertainty. The company concentrated heavily on innovation, was mindful of food trends and offered fair price strategies. The directors were pleased with the results which were in line with expectations."
He told how the acquistion by Swedish stock exchange-listed AAK was "the most notable event", adding: "Since the year end Covid-19 has had a significant impact on the economic climate at home and abroad. The UK lockdown that became effective during March 2020 had a dramatic effect on the hospitality and leisure sector, where most of our customers are based, and the closure of their businesses for a substantial period of time naturally curtailed our ability to supply.
"We did, however, react quickly to ensure a revised business model that was fit for purpose was in place and despite registering losses during this period we were able to trade our way through it and emerge thereafter in a healthy position.
“We have responded to the most recent lockdown in a similar way and remain confident that we shall continue to fulfill our potential in line with our revised business projections.”
BD Foods was established in 2001 and has approximately 100 employees. The company has a portfolio of more than 3,000 products that are sold to a wide range of customers, including restaurants, hotels, airlines, wholesalers, and food manufacturers.
Soya International (Europe) Ltd, of Manchester and MaasRefinery of Rotterdam were also added to the AAK International stable later in the year.
