UK: Simpsons Malt publishes financial results for 2024

Simpsons Malt has published its financial results for 2024, posting a profit before tax of £9.5million, Northumberland Gazette reported on September 26.

The Berwick-based company, which includes agricultural merchanting division McCreath Simpson & Prentice, stated that profitability was lower than in 2023 (£15.2million) due to several factors – including lower malt sales values, a small decrease in speciality malt volumes, increased costs and the quality of the 2023 malting barley harvest.

The wider drinks market also presented challenges for base malt sales volumes, particularly to distilling customers.

Whisky exports by value decreased by 9.5% in 2023 and a further 3.7% in 2024 with global trade disruption, weaker consumer spending and higher domestic taxation all impacting spirit production, and therefore malt demand.

The merchanting division, meanwhile, delivered another profitable year despite difficult trading conditions in UK agriculture.

Grain and feed trading outperformed 2023 despite softer raw material costs and lower whisky production, while fertiliser returned to profitability after significant market disruption in the previous year.

Over the past two years, the group has invested £31.7million in infrastructure projects to support malt customers, including £11.5million in 2024.

Simpsons Malt managing director Tim McCreath said: “While profitability was lower in 2024 than in 2023, we have continued to deliver strong results in a challenging environment.

“We have continued to invest in our infrastructure with numerous projects completed in 2024, while our long-term commitment to utilise renewable energy through the Energy Centre neighbouring our Tweed Valley Maltings highlights the positive environmental changes we are making.

“The drastic reductions in malt production emissions not only provides direct benefits to us as a business, but also ensures significant carbon footprint reductions for the malting customers we supply.”