Mackie’s of Scotland has broken through £20 million turnover thanks to success of its ice cream in UK and international markets.
Turnover at the Aberdeenshire family business rose from £17.7m to reach £20.8m last financial year.
UK ice cream sales increased by rise 13%, while its export sales grew by 27%.
Mackie’s sold more than 13.3 million litres of ice cream, the equivalent of filling 166,250 standard sized bathtubs.
This allowed Mackie’s to expand its workforce to more than 100 employees for the first time in its history.
Rising costs a concern
However, despite the increase in turnover, costs for the business also rose significantly, by 31%.
It resulted in a near 21% drop in pre-tax profits to £1.3m for the year ending May 31 2023, from £1.7m in 2022.
Managing director Stuart Common today said it was important for the business to keep “working very hard” due to the impact of rising costs including transport, energy and ingredients.
He said: “All aspects to make the product have risen.
“Right now the price of cream is still much higher than it was before but has dipped from the high it once was.
“It’s costing way more to make ice cream just now than it did in the past.
“We’ve got our own herd of cows that give us the milk but we buy in the cream.
“Looking ahead it’s going to continue to be difficult to keep a lid on costings.
“Some things have eased slightly but there’s still many ingredients and aspects of making the product that are costing more than before.
“We are going to have to keep working very hard to be able to make a profit and we need to make a profit because we need to invest in the business for the future.”
Mackie’s renewable energy paying off
Revenue at Mackie’s 19.2 parlour, in Marischal Square, Aberdeen, “continued to grow further building on last year’s strong recovery after the impacts of the Covid-19 pandemic”.
Sales increased to £401,036 in 2023, compared to £322,841 in 2022.
The fourth generation family farm, Westertown, near Rothienorman, is powered by renewable energy and started making ice cream – using milk and dairy from its own herd – in 1986.
Farm revenue decreased but income from renewable energy generation increased by 34% to £1.2m.
Around 70% of the business’ power being renewably generated on site with solar panels, wind turbines, and biomass boilers.
Continued investment
Mr Common said: “Last financial year we spent £1m on new equipment and we want to continue to do that.
“We need to grow our sales even more to be able to turnover the profit because the margins are so tight.
“We’ve managed to keep a lid on cost increases so they aren’t passed on to customers.
“We’ve tried to keep as many shoppers as we can. The more the cost goes up the more you lose.
“The big one for us was breaking through the £20m turnover which was a milestone for the business.
“I remember in years gone by we were sat at £10m for quite a while so to get past £20m is pretty significant.
“Continue to work hard and grow sales in UK and the export market including targeting China in the year ahead.”
Mackie’s also saw a 33% rise in the sales of its chocolate.
Mac Mackie, chairman and one of three family owners at Mackie’s, said: “As a proudly Scottish family business, we remain dedicated to our Aberdeenshire home here on the family farm, while also being determined to continue to provide moments of joy to our customers across the world through our ice cream and chocolate.”