Simpsons Malt weathers global market challenges

A Northumberland-based malt producer has seen its profits adjust after a “challenging” market year.

Simpsons Malt Limited, the fifth-generation family-owned Certified B Corporation founded in 1862, reported a 2024 profit before tax of £9.5 million from turnover of £264.1 million, down from £15.2 million and £301.3 million in 2023. 

The decline reflects lower malt sales values, as well as a slight drop in speciality malt volumes, coupled with rising costs and the impact of the 2023 barley harvest. 

Base malt demand, particularly from distillers, was also affected by weaker whisky exports, global trade disruptions and higher domestic taxation.

Despite this, the company’s merchanting division, including agricultural merchanting division McCreath Simpson & Prentice, delivered another profitable year, with grain, feed and fertiliser trading outperforming the previous year.

Meanwhile, investment in infrastructure continued, with £11.5million spent in 2024 to expand malt capacity at Tweed Valley Maltings and storage at Tivetshall and Tweed Valley. 

The commissioning of a renewable Energy Centre at Tweed Valley has also cut site carbon emissions by roughly 76 per cent, reducing the group’s overall footprint by around 55 per cent.

Tim McCreath, managing director of Simpsons Malt, said: “While profitability was lower in 2024 than in 2023, we have continued to deliver strong results in a challenging environment.

“We have continued to invest in our infrastructure with numerous projects completed in 2024, while our long-term commitment to utilise renewable energy through the Energy Centre neighbouring our Tweed Valley Maltings highlights the positive environmental changes we are making. 

“The drastic reductions in malt production emissions not only provides direct benefits to us as a business but also ensures significant carbon footprint reductions for malting customers we supply out of our Tweed Valley Maltings.”

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