News Applaws Owner Sees Turnover Rise 10m

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Applaws owner sees turnover rise £10m
4th October 2019

By Sandra Pearce

Turnover at premium pet food company MPM Products has shown strong growth, rising £10m to £62.6m for the year ended December 2018.

In its annual report, the company said this 18% growth mirrored the 19% growth seen in 2017. MPM has enjoyed success in the US and Asia, and profit after tax has risen from £3.7m to £5.6m.

EBITDA (earnings before interest, tax, depreciation and amortization, essentially a measure of a company's operating performance) rose £3m, from £4.4m in 2017 to £7.4m in 2018, which the company said reflects its growth in revenue and an increase in gross margin.

MPM Products is home to the Applaws, Encore and Reveal ranges of pet food, and cat litter brands Nature’s Calling and World’s Best Cat Litter.

POSITIVE

In the annual report, chief financial director James Bracewell said: “The trading outlook remains positive given the Company’s brands are well positioned in their respective markets and the consumer trend towards premium, natural products is expected to continue.

“The investment in systems and people has been maintained over the year and the team is well placed to take advantage of the opportunities being targeted.”

In June this year, news broke that the company’s private equity owner, ECI Partners, had appointed advisers to find a buyer and was seeking in the region of £100m.

This is double the price ECI paid for a majority stake in the Macclesfield business in March 2016. ECI is reported to have appointed bankers from Harris Williams to achieve a sale by next year.