Record-Breaking Dividend for Plant-Based Spreads Giant, Post-Acquisition by KKR
Large-scale compensation awarded to employee at the company renowned for producing Flora and I Can't Believe It's Not Butter products.
In a groundbreaking move, the company behind recognizable brands like Flora, I Can't Believe It's Not Butter, and Stork margarine, has dished out a staggering £90 million dividend - the first such payout since it was seized by private equity titan KKR in 2017.
Headquartered in the US and boasting a wide empire encompassing Zenith Energy and more, KKR captured the Flora Food Group (then known as Upfield) from Unilever for over $8 billion. This monumental payout stems from the spreads manufacturer's latest financial year.
This dividend comes as the first issued by Flora's UK division since its takeover by KKR, with the pan-European conglomerate headquartered in Amsterdam. The financial details have been unearthed in the recently released accounts for Flora's 2024 fiscal year, which paints a picture of dipping turnover from £242.6 million to £222.7 million and reduced pre-tax profit from £18 million to £16.9 million over the same period.
As the UK's leading purveyor of plant-based spreads, Flora remains steadfast in its mission. In a statement endorsed by the board, Flora flaunts a satisfying development of its business and financial position at year-end, exhibiting no significant deviations from its current activities in the forthcoming year. They also anticipate moderate sales growth and maintaining profitability at the same margin.
On the horizon, Flora eyes a return to sales growth. The company eyes maintaining its position as the UK's leading plant-based spreads company, and continues to operate as a going concern, bolstered by its net asset position.
Inspired by its commitment to the vegan lifestyle, Flora vowed to transform all of its Buttery products vegan-friendly by October 2023 - a significant evolution for the brand, which had tampered with its plant-based roots by incorporating buttermilk three years prior.
Although specifics regarding KKR's post-acquisition strategies for Flora aren't explicitly outlined - as KKR's primary focus tends to be on scaling operations, leveraging synergistic opportunities, and expanding into new markets, as observed in its Q1 2025 investor materials - it's evident that Flora's vegan transformation aligns with the larger picture of business growth and diversification under KKR's guidance.
The record-breaking dividend of £90 million issued by Flora, a plant-based spreads manufacturer, indicates a strong financial performance and potential growth in the food-and-drink industry, following its acquisition by the private equity giant KKR. Under KKR's guidance, Flora, with its commitment to the vegan lifestyle and strategic transformation of its products, aims to diversify its business and expand into new markets in the finance and lifestyle sectors.
