BREXIT is already taking its toll on profits at Buckfast brand owner J.Chandler & Company, it appears, despite the tonic wine enjoying a 3% increase in turnover.
The latest financial figures from the firm reveal that during the year to 31 March 2017, sales increased from £41.9m to £43.2m. However, operating profit decreased slightly down from £3.48m in 2016 to £3.37m in 2017, a decline which the firm said could be largely attributed to a worsening Euro rate.
Forecasting for the year ahead, J. Chandler’s directors predict that while turnover is likely to increase again over the course of 2017/18, profits may continue to decline in the face of Brexit uncertainty.
A statement from the directors read: “The company expects modestly increasing turnover during the year 2017/18, although profits will continue to be affected by the worsening exchange rate with the Euro following Brexit. The largest uncertainty concerns the change in wine prices going forward, and the effect of any consequential price rise.”