The frozen food manufacturer, which employs 1,274 people in the UK, increased its profit before tax to £63.8M for the year ended June 30 2016.
Revenue was £452M, up 2.71% on the previous year. In its annual report, McCain said “the company will continue to be profitable and generate a positive cash inflow”.
Employee costs, which included social security and pension costs, increased by 1.45% to £56.7M. This was despite the company having 100 fewer staff than the year before.
Dividends to shareholders totalled £50M for the year, down from £55M in 2015.
‘Significant investment’
Last month, McCain announced it would be expanding its UK headquarters in Scarborough, North Yorkshire, in a “significant investment”.
The manufacturer said the investment would help meet increased demand for its products, upgrade equipment and increase sustainability at the factory.
Plans included the installation of odour reduction technology, and renewable technology to lessen the company’s environmental impact. The perimeter of the factory would also be re-landscaped.
At the time of the announcement, McCain corporate affairs director Bill Bartlett said the investment would allow the company to “meet the ongoing increased demand for our products, address long-term capacity and capability opportunities and deliver the latest technology and broader environmental benefits”.
He added: “This proposal certainly secures our operations in Scarborough and continued employment in the area for decades to come.”
McCain – at a glance
- Profits up 8.6% to £63.8M
- Revenue up 2.17% to £452M
- £100M investment at Scarborough
- 74 job cuts at Scarborough
Plans to cut 74 jobs
In February, McCain announced plans to cut 74 jobs at Scarborough after proposing to close its loss-making cold store operation at the site.
The cold store area was coming to the end of its “serviceable life”, and production would be outsourced to a third-party “to ensure the long-term sustainability of the overall facilities in Scarborough”, the company said.
At the time, 736 employees were employed at the Scarborough site.
McCain operates four sites in the UK, as well as a potato seed business in Montrose, Scotland.
Working with more than 300 growers, it claimed to be the largest purchaser of British potatoes in the UK, buying around 15% of the annual potato crop.
The family-owned firm operates 41 production facilities and employs 17,000 people globally.