Biscuit International Reports Profit Growth Despite Sales Slowdown

Sales of gluten and milk-free cookies at Biscuit International, a manufacturer based in Team Valley, have experienced a slowdown. Despite this decline, the company has reported a significant increase in profits. According to the latest accounts for its UK operations, sales volume growth decreased to 8% in 2024, down from 25% the previous year.

The firm’s turnover rose to £77.8 million, an increase from £72.2 million in the prior year. Operating profits surged to £2.3 million, compared to £924,000 the year before. Pre-tax profits also saw a notable rise, climbing from just over £54,000 to £1.43 million.

Biscuit International attributed its profit growth to strategic adjustments, including cross-selling of products and price increases implemented to mitigate soaring cocoa costs. Data indicates that cocoa prices peaked at over £8,000 per tonne by the end of 2024, significantly up from below £2,600 just two years prior, although they have since decreased.

Operational Insights and Market Position

Biscuit International’s operation in Gateshead focuses on producing gluten and milk-free biscuits, positioning itself as the UK’s leading manufacturer in this niche market. The company is part of Europe’s largest private label cookie-making group, which produces a variety of products, including sandwich cookies, cakes, and stroopwafels.

The Team Valley factory has a rich history, having commenced production in the late 1930s. Originally branded as Northumbrian Fine Foods in the mid-1980s, it was acquired by Biscuit International in 2018 and rebranded as Biscuit International UK last year. The facility now produces over 5,000 tonnes of biscuits annually and is known for the Prewetts brand, which includes various products such as plain and chocolate digestives, shortcake, jammy wheels, and all-butter cookies.

In the company’s accounts, Neil McAndry, managing director of Biscuit International UK, emphasized the competitive nature of the market and the evolving habits of consumers. He expressed confidence in the business’s future, stating that the strategy focuses on enhancing profit margins and achieving sustainable growth through customer retention and expansion.

Future Directions and Investment Strategies

Biscuit International aims to develop opportunities across retail, non-retail, and food service markets while increasing export sales. Strengthening relationships with major retail and wholesale partners is crucial for expanding market reach and profitability.

To support these objectives, the company is investing in its commercial organization to drive cross-selling initiatives, along with enhancing plant and machinery to improve capacity and efficiency. Continuous improvement programs are also being implemented to optimize operations.

McAndry noted that ongoing product innovation and the expansion of cross-sell opportunities within the UK market are expected to sustain and enhance profitability. This proactive approach is designed to ensure that Biscuit International remains competitive and well-positioned for long-term growth.

The wider Biscuit International group currently operates 32 factories across Europe, including locations in France, Belgium, the Netherlands, Sweden, Portugal, Spain, and Germany, reinforcing its stature as a key player in the global cookie manufacturing industry.