Record-breaking profit surge for Twinings: Approaches £100 million in tea company earnings
British Tea Brand Twinings Appreciates Nearly £100 Million in Profit Due to Domestic Market Growth
London-based tea company Twinings has reported a substantial increase in its pre-tax profit, with figures reaching £99.1 million for the 12 months ending August 31, 2024, marking a £4.1 million uptick from the previous year. This growth is primarily attributed to a significant expansion within the domestic market.
The firm's revenue also experienced a rise, increasing from £226.7 million to £234.3 million during this period. The UK revenue rose to £114.2 million from £106.6 million, while export sales continued their steady growth, touching £88.8 million from £86.5 million. Nevertheless, income from royalties dropped slightly from £33.5 million to £31.7 million.
The statement disclosed by the Twinings board reveals a 3% increase in revenue year-on-year, with a 7% growth in the domestic market, primarily driven by the success of infusion and benefit teas. Despite this growth, the company's operating profit declined by 8%, due to increased input costs and investments in future growth, both in advertising and promotions as well as in R.Twining and Company's business transformation project.
Associated British Foods, the company that owns Twinings, does not report individual financial performance for its subsidiaries in its group results.
Comparison with Rivals
Twinings' financial success comes after Yorkshire Tea surpassed £300 million in sales for the first time ever, with its profit more than doubling during its latest financial year. The Betty's & Taylors Group, the maker of Yorkshire Tea, reported a turnover of £319.2 million for the 12 months ending October 31, 2024, and a pre-tax profit of £28.8 million, up from £12.9 million in the prior year.
On the other hand, Clipper Teas, a brand known for its organic and ethical sourcing, has also experienced a substantial boost in profit after the sale of Whole Earth to KP Snacks. Kallo Foods, the company that owns Clipper Teas, recorded a pre-tax profit of £71.6 million in 2024, representing a significant increase from £6.9 million in the previous year due to the Whole Earth deal. This profit increase is expected to result in a dividend of £76 million to the company's owner, a consortium consisting of PAI Partners and Charles Jobson.
In the evolving tea industry, Twinings, a British brand, witnessed a £4.1 million increment in pre-tax profit, reaching £99.1 million, largely due to the growth within the domestic market. Concurrently, rival brands like Yorkshire Tea and Clipper Teas showed robust financial growth, with Yorkshire Tea surpassing £300 million in sales and Clipper Teas experiencing a significant increase in profit following the sale of Whole Earth.
