UK honey company announces 240% profit increase as demand climbs
A UK honey company has announced that its profits have grown by more than 200 per cent across the past year.
The British Honey Company (BHC), which produces honey, honey-infused spirits and alcohol sanitisers, saw gross profits increase to £0.92m in 2020, a 240 per cent rise on the previous year’s £0.27m.
The company also reported that its revenue from continuing operations during the period increased by 146 per cent, rising from £0.63m to £1.55m.
It said that the increased demand was due to a number of factors - its increase in production of alcohol-based sanitiser products, expansion into whiskey production and its further growth in the US.
Michael Williams, British Honey’s chairman and CEO, said: “Like so many other consumer-driven businesses, the largest single influence during the period has been the Covid-19 pandemic, which was prevalent throughout.
“I am pleased to report that the company reacted quickly and positively in March last year to the changed economic environment and its effects upon “on-premise” spirits sales, switching spare production capacity to alcohol-based sanitiser products and enhancing its online spirits offering both in terms of direct B2B sales and the integration of the company’s proprietary software systems into third party online systems.
“Particularly pleasing was the resultant significant increase in online sales, where integration with these third party platforms, which provide key ecommerce sales channels, has been enhanced by the very successful adoption of Shopify which has facilitated seamless order management with a number of large online retailers including, but not limited to, Amazon’s Seller Central Platform, Ocado, Virgin Wines, BHC’s own website, and Masters of Malt.
“Reflecting a strong performance in the last quarter of 2020, including the important Christmas period, total revenues from continuing operations increased by approximately 270 per cent over the corresponding period in 2019.
“The company’s focus has been to build scale and to concentrate on business fundamentals.
“The group has made significant progress in 2020 and this positive trading momentum has continued into the current financial year, not least with the successful acquisition of Union Distillers Limited, completed in February.
“As Covid restrictions continue to be eased, the hospitality sector is gradually returning to normal and should be fully open by the summer. This will provide further opportunities for an improved performance by BHC with its considerably expanded product range and manufacturing capacity.”
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