Biscuit International UK, the gluten-free biscuit manufacturer based in Team Valley, Gateshead, has reported a fall into loss following a year of rising costs for ingredients such as cocoa and for wages.
Newly filed accounts show the French-owned business, which employs around 231 people, saw revenue fall 5% last year to £74.3m. The company recorded an operating loss of more than £286,000, compared with an operating profit of £2.29m the previous year.
Cost pressures and lower volumes
Directors said the results largely reflected lower sales volumes and the lag between cost inflation being incurred and the implementation of price increases. The Team Valley site, which produces more than 4,300 tonnes of biscuits each year, makes plain, chocolate and sandwich formats.
The business traces its Tyneside roots back to the late 1930s and was later rebranded as Northumbrian Fine Foods in the mid 1980s. In 2018 it was sold to Paris-based Biscuit International and has since supplied a range of products including "all butter" gluten-free and milk-free cookies for customers and through its own brand, Prewetts.
Challenging trading conditions
Writing in the accounts, Biscuit International's Neil McAndry said: "Trading conditions remained challenging throughout 2025, with continued inflationary pressure on key raw materials and labour costs. In particular, costs associated with egg-based ingredients and cocoa remained significantly above historical levels due to ongoing supply constraints."
Mr McAndry wrote that despite continued uncertainty in the economy, the company was focused on delivering volume growth, improving its profitability and strengthening itself for the long term. Its strategy continues to be enhancing profit margins and seeking growth through cross-selling opportunities.
He added: "The company continues to operate in a highly competitive market, with consumer demand impacted by ongoing economic pressures and changes in consumer habits. The company has responded by focusing on the development and resilience of the business."
Investment and outlook
Investment in operational improvements and production capabilities continued alongside longer-term capacity planning, supporting both existing customer requirements and future opportunities.
The wider Biscuit International group is considered one of the top private label biscuit and bread substitute producers in Europe, with 30 factories and a workforce of more than 5,000 people. Earlier this year the group announced an extension and amendment of its financing facilities, which it said showed existing lenders' and shareholders' confidence in its business model and growth prospects.
