Creightons, a hygiene product company that thrived during the Covid-19 pandemic, is now making strides in adjusting to a post-pandemic world. The company has effectively transitioned from depending heavily on one-time hygiene purchases to achieving growth across its branded, private label, and contract manufacturing divisions. According to the preliminary results for the year ending March 31, Creightons reported a notable 21.8% increase in core business sales, reaching an impressive £57.3 million. This growth was primarily driven by a remarkable 37.7% surge in own branded sales (excluding hygiene), a solid 9.5% rise in retailer own label products, a notable 29.3% increase in contract manufacturing sales, and an outstanding 45.6% boost in total overseas sales, amounting to £10 million.

Despite these positive figures, the company experienced a slight decrease of 0.7% in total revenue, which amounted to £61.2 million. This decline can be attributed to the reduction in costs associated with Covid-19 defenses in comparison to the previous year. Sales of hygiene products, which accounted for a significant portion of the revenue at £14.6 million in the previous year, drastically decreased to £0.3 million and are not expected to be recurring in the future. Furthermore, the earnings column faced its fair share of challenges, with EBITDA declining to £5.9 million from £6.9 million in the prior year, and operating profit decreasing by 19.1% to £4.37 million. The operating profit margin also experienced a slide, dropping to 7.1% from 8.8% in 2021. Additionally, post-tax profit for the year decreased to £3.1 million from £4.3 million.

Nevertheless, Creightons assured stakeholders that its balance sheet remains robust and boasts new intangible assets valued at £10.1 million as a result of recent acquisitions. The company highlighted its ongoing investments in working capital, product development, and fixed assets to support business growth and bolster efficiency. Bernard Johnson, the managing director of Creightons, praised the exceptional performance of the team in navigating the challenges brought about by Covid-19 and global supply chain disruptions. Johnson expressed unwavering confidence in the company’s vertically integrated model, which provides a competitive advantage, and outlined plans to mitigate overhead costs and enhance manufacturing efficiencies.

In conclusion, Creightons has successfully adjusted to the post-pandemic landscape by diversifying its revenue streams and reducing reliance on hygiene product sales. While a slight decline was observed in total revenue, the company remains optimistic about its future prospects and is diligently focused on cost reduction and process improvements to uphold its competitive edge.

Useful Links:
1. Creightons Official Website
2. Creightons on Reuters