Kettle profits wiped out by bad weather

Published on Tuesday 9 February 2010 20:23

POOR weather saw profits wiped out at Kettle Produce, the Fife-based vegetable and salad producer which employs more than 800 people.

Although turnover grew by 8.1 million to 92.7m in the year to 30 May 2009, operating profits slumped to 140,000 from 2.18m the previous year. After interest costs, the company recorded a pre-tax loss of 142,074.

The Cupar-based firm, one of the UK's biggest suppliers of prepared vegetable packs to supermarket chains, said wet weather had reduced the availability of crops, and low temperatures and lack of sunlight had also reduced yields.

The company said it also had to source more products from overseas during the year to meet demand, with the devaluation of sterling against the euro leading to higher costs. And it suffered significant increases in raw material costs with a 23 per cent hike to 52m.

During the year Kettle also invested heavily in an effluent treatment facility at its Orkie site in Fife.

In their report to the accounts, the directors said the first quarter of the new financial year had remained difficult but added that crops were well established.

The highest-paid director at the firm received a pay package totalling 148,236, up from 141,995. The wage bill for the 884 people employed by the group rose slightly to 16.4m.

The firm was established 25 years ago and is owned by the McIntyre and Samson farming families. As well as its UK interests, it owns a stake in a Spanish registered company which packages and exports broccoli.