PROFITS at Mackie's were flat on the back of a £1 million fall in ice-cream sales but the business is hopeful new products will help return it to growth.

Turnover at the Aberdeenshire company declined from £12.4m to £11.6m with pre-tax profits in the year to May 31, 2011, falling from £309,609 to £299,626.

Ice-cream revenue dropped from £11.5m to £10.5m while farming income went up from £464,231 to £541,276, wind turbines from £400,965 to £496,303 and the joint venture crisps arm increased from £64,058 to £111,619.

Rising global foodstuff prices led to a higher cost of ingredients which was highlighted as one factor that affected profits.

Managing director Mac Mackie said: "There was no one thing you could really pinpoint which caused the drop in ice-cream sales.

"We did less promoting and the weather wasn't great but it was a mix.

"This year we are slightly ahead of last year in ice-cream and we are hoping for another substantial increase in crisp sales."

The bulk of sales are in the UK with around £150,000 in Ireland and £50,000 in South Korea and the United Arab Emirates.

However, the crisp division has recently signed up its third customer in the United States and is targeting major export growth.

A new range of ice-creams called Indulgent and with flavours including butterscotch and toffee apple is being launched soon.

Mr Mackie said: "The new products will be appearing in the next few weeks and hopefully we will get good listings in shops and a good summer this year."

While net debt was cut from just above £3m to £2.8m, Mr Mackie told The Herald reducing debt would not be done at the expense of investing in the business.

He added: "We are looking at various projects which would incur taking on new debt for a capital spend.

"Some of it will be in renewable energy and there are some product things which I can't really say much about at the moment.

"Overall, I'm quite happy with the way things are going. Just about every business has been finding things tougher than they were previously but I think we are doing well."

Directors' remuneration increased slightly from £281,250 to £284,008 with the highest paid director seeing their package falling from £73,475 to £69,121.

The company employed an average of 82 staff which was up from 75.

Work on recycling packaging, having zero waste water and renewable energy production meant ice-cream production now has a carbon positive status.

Further improvements in reducing waste to landfill, capturing heat and saving electricity are planned during 2012.