Sales growth reported by Simon Howie Butchers

Scottish-based Simon Howie Butchers has seen a year of sales growth, despite mounting pressures. 

In reports filed to Companies House earlier this month, in the year to 31 December 2016, it reported a 5% year-on-year increase in turnover and a 1% increase in operating profit.

It attributes the growth in turnover to the marketing of new products.

In its strategic report, Simon Howie said: “2016 was an exciting year for the business, and in many ways it was a similar picture to 2015’s trading conditions. Sales growth was achieved, yet we sold product at lower prices than in the past five years.

“A reduction in raw material costs allowed us to pass on some significant price reductions to our customers and, similarly, any increases in overheads were absorbed without having difficult price increase negotiations.”

He did express some concern for the next 12 months. “The current 2017 year will likely be a very different outcome as we now see costs rising significantly, both on raw materials and overheads.”

Howie said that the business would continue to improve efficiencies to help it remain competitive.

“Our competitors continue to challenge us and, as such, we realise the need for constant improvements in terms of product development, packaging and presentation and, of course, value for money. The steady increase in labour costs coupled with packaging and utility cost hikes, some of which we are informed, related to the currency and other macroeconomic issues, mean we will be endeavouring to implement new systems and procedures that will increase our efficiency within the factory, thus allowing us to absorb these increases without suffering a significant margin drop.”

Earlier this month, the business revealed new branding for its products, designed to reflect its Scottish heritage.

Want more stories like this in your inbox?

Sign up for our FREE email newsletter

Keywords:

My Account

Spotlight

Most read

Social

For the third year running, a grain fed cow won the World Steak Challenge. What do you think produces the best beef?

Calendar