Mackie's of Scotland has posted record revenues and profit following a surge in demand for its ice cream in England and Wales, but has warned that rising costs are hampering current performance.

Turnover at the family-owned company rose by 11 per cent to £18.5 million during the year to the end of May 2021, while operating profit was up by 19% at £4.1m. Although sales have remained strong in the current year, managing director Mac Mackie said profits will likely be lower.

Growth in the UK premium ice cream market was spearheaded by a 40% increase in sales in England and Wales, with second and third listings of its range in major superstores including Sainsbury’s, Asda, the Co-op and Marks & Spencer. The growth followed a year of investment in the brand with new packaging and digital advertising campaigns.

The Herald:

Mackie’s range of chocolate bars saw a 15% uplift in UK sales. The company said it also generated income from its investment into renewable energy, which delivers surplus energy into the grid from a 7,000 panel solar farm, a biomass plant, and four large-scale wind turbines at the fourth-generation Westertown Farm.

“Against a backdrop of the pandemic’s impact on consumer confidence and rising production costs, we are very pleased to have delivered a robust performance and positive financial results which show steady growth for the eighth consecutive year," Mr Mackie said.

However, he added: “For the current trading year, sales to our major retailers remains strong, but overall company performance will be affected due to continuing cost increases, and profit is forecast to be lower than in 2020/21.”

The company is now focusing on improvements to its plant and systems to increase output and reduce costs. Its new £4.5m low-carbon refrigeration facility, supported by the Scottish Government’s low carbon infrastructure transition programme, it is due to be completed in the spring and is expected to cut energy use by up to 80%.

READ MORE: Mackie's hails huge profit hike on ice cream, chocolate sales

Two new flavours are due to be launched this year. Mackies is also looking to increase exports into Asia to help counter "challenging times ahead due to increased production costs".

“We have identified how important quality of product is to our customers and consumers and further investment in new freezers and our new refrigeration system not only improves our environmental credentials but has also been proven to improve the quality of our ice creams," Mr Mackie added.

“Other investments in renewable energy and animal welfare underlines our commitment to sustainability and helps ensure the longevity of what is now a fifth-generation family business for future generations of family, staff and customers.”