The company behind Seabrook crisps has warned that tax increases outlined in Chancellor Rachel Reeves’ Autumn Budget will have an effect on its financial performance this year.
Calbee Group UK, the British arm of Japanese snack giant Calbee, is based in Cheshire and flagged the April hikes to the National Living Wage and employers’ National Insurance contributions as major headwinds for the remainder of 2025. Rising costs for key ingredients such as potatoes and cooking oil, as well as ongoing labour expenses, are also expected to put pressure on the business.
Despite these concerns, the company said it remains optimistic about the direction of its performance, projecting growth in both turnover and operating profit for the current financial year.
The challenges were detailed in the firm’s financial accounts for 2024, recently filed with Companies House. These show that the group reported a turnover of £71.6m, up from £66.3m the previous year. However, pre-tax profit dropped from £6m to £5.2m.
The brand, headquartered in Bradford, was bought by Calbee in October 2018. Prior to the acquisition, it had been 75 per cent owned by private equity firm LDC and 25 per cent held by the management team. In addition to Seabrook, Calbee’s portfolio includes the Harvey Snaps brand and a licensing agreement for Peppa Pig products.
In 2023, profits had nearly doubled, prompting the company to accelerate investment plans, as previously reported by City A.M.
The company said 2024 proved to be “a challenging year”, largely due to delays in a major capacity expansion project at the Bradford site and ongoing cost inflation. According to a statement signed off by the board, general rises in raw material costs—most notably potatoes and oil—as well as labour, were pressing issues in the latter half of the year. The board warned that these cost pressures are expected to continue, particularly against the backdrop of the rising Living Wage and employer National Insurance increases.
Calbee Group UK said the expansion in Bradford marked the largest project it has ever undertaken, significantly increasing its crisp production capacity. However, commissioning delays placed strain on stock levels through the summer and into the Christmas period, making it difficult to meet customer demand during what is traditionally its most profitable quarter.
Operating profit for the final months of 2024 was “hampered” by issues during the commissioning phase, which led to elevated levels of waste and inefficiencies in labour utilisation, the company added.
Looking ahead, the group said its Bradford site operations had now stabilised, with its weekly service levels returning to expected standards across both of its production facilities.
With improved output performance, a robust product development pipeline and a strengthening brand, Calbee Group UK said it expects to recover its cost base, boost sales and return to historic levels of operating profit over the course of 2025.
Seabrook traces its roots back to a fish and chip shop in Bradford established in 1939 and began producing crisps in 1945.
