Turnover rise for Kenco maker despite coffee lovers buying less after price rises
Sales at Jacobs Douse Egberts, whose brands include the likes of Kenco and L’or, increased despite fewer people buying coffee after the group upped its prices.
The Maidenhead-headquartered UK division of the Netherlands giant said consumers bought less coffee during its latest financial year because it rose its prices because of “exceptional levels of input cost inflation”.
Its professional arm also saw its turnover rise while volumes decreased because of the loss of a major contract.
Newly-filed accounts with Companies House have revealed that the UK division’s revenue increased from £375.6m to £391.2m in 2023, while its pre-tax profit also grew from £9.6m to £10.2m.
A statement signed off by the board said: “The focus of 2023 has been to grow the business profitably and to concentrate on the key strategic choices in terms of brand and channel growth that have been set by JDEP for the UK.”
How does Kenco owner compare to rivals?
The results for Kenco maker Jacobs Douse Egberts come after sales at the UK arm of coffee brand Lavazza jumped past the £100m mark for the first time.
The Uxbridge-headquartered division’s turnover totalled £102.3m for 2023, up from £92.5m.
Its pre-tax profit also grew from £1.3m to £1.5m over the same period.
City PM also recently reported that the UK arm of Nespresso signed up David Beckham and used King Charles’ coronation to help boost its sales and profit during its latest financial year.
The division, which is owned by Nestle, reported a growth in its pre-tax profit for the 11th year in a row while its turnover has continued its run of increasing every year that records are available on Companies House.
The York-based arm reported a pre-tax profit of £14m for 2023, up from the £13.3m it posted in 2022. Its turnover also rose from £329.9m to £338.6m.