Sales at Fife Creamery have fallen by 20%, while profit is also down by more than a third after a “challenging” year.
The firm, which supplies chilled foods to a range of outlets, has endured a fall in turnover of nearly £5 million.
Recently-published accounts show sales in 2019 were £24.6m, but in 2020 that dropped to £19.7m.
Gross profit also fell by 36%, from £3.7m in 2019 to £2.3m in 2020.
Fife Creamery sales down
And the Kirkcaldy-based business’ pre-tax profit dropped from £853,000 to £238,000 over the same period.
Managing director David Simpson said Covid-19 and the restrictions imposed had an impact on the business.
In his strategic report, Mr Simpson said: “As would be expected due to the impact of the global Covid-19 pandemic in the second half of the financial year and the resultant restrictions on trade, it was a challenging year overall for the business.”
It has grown into one of the UK’s major stockists of chilled foods. The firm operates from a £2m 30,000 square feet custom-built depot.
It has over 2,500 chilled food lines held in readiness for next day deliveries.
It has a supply chain link to manufacturers working at the highest level in the food industry.
Its customers include a range of restaurants and hotels, the NHS, colleges and tourist attractions.
Fife Creamery also works with contract caterers, coffee shops, delicatessens and convenience stores.
Mr Simpson is confident that the company will be able to bounce back.
He believes as restrictions are eased, Fife Creamery will be able to deal with an upturn in demand.
“Due to the strength and creativity of the team, we have been able to adapt to the challenges we faced,” he said.
‘Stronger position’ for firm once normality returns
Mr Simpson added: “The board of directors firmly believe the company will be in a stronger position once the country returns to something resembling normality.”
He said that the reopening of important customers would be vital.
Mr Simpson added the company’s position remains satisfactory despite “difficult times”.
The managing director added: “Post year-end the company is trading well in spite of the continued Covid-19 restrictions.
“It is generating sufficient cash profits to meet its obligations as they fall due.
“As the Covid-19 restrictions are lifted and key customers in healthcare, education and catering are permitted to reopen, the company is ready to react to increased demand.”