Yahoo Finance Sweet success for Haribo as UK sales hit record high thanks to new products
The UK arm of gummy confectionery giant Haribo, which also makes Maoam chews, has achieved record sales for the second year in a row as a string of new seasonal product launches continued to tempt consumers.
The Pontefract-headquartered company grew its turnover to £270m in 2023, up from £218m in the year before, according to results that have just been filed with Companies House.
Hairbo’s UK export sales increased by 20 per cent compared to the year before, while domestic sales grew 24 per cent.
The company, which has its global headquarters in Germany, said this had been driven by the launch of new seasonal treats including its Funtasia bags, Box of Happy and lizard-themed Awesome Axolotls.
It also received a boost from its newly opened Haribo retail store in Portsmouth – the company’s tenth UK shop.
But despite growing its sales, Haribo’s UK pre-tax profit dipped to £31m from £35m in the year before, as it said inflation continued to impact its margins.
In a statement published to Companies House, the company behind Haribo UK said: “2023 was a strong year for the company with a 24 per cent increase in turnover.
“Haribo UK was leading the category with its highest ever market share of 21 per cent and five of the top ten selling products being Haribo or Maoam lines.
“Gross profit margin [was] negatively impacted by inflation, not fully recovered within the year, as well as a one-off restructuring provision release in 2022.
“This resulted in operating profit of £33m in 2023 compared to £32m a year ago.
“Fair value gains on foreign exchange in 2022 moved to fair value losses in 2023 further impacting profit before tax. Cash balances reduced as a result of building healthier stock levels.
“In January 2024 we were pleased to received planning permission for a new warehouse on our Castleford site, which will allow us to manage increased volumes of finished product, stock more raw materials and packing and help safeguard 600 jobs across our West Yorkshire sites.”
