This profit rise came on the back of £1 billion in sales across its network of more than 300 stores and four distribution centres, up from £941.6m the year before.

This financial resilience is an anomaly in the food retail industry, as supermarket giants including Tesco, Asda, Sainsbury’s, and Morrisons have all reported significant profit declines recently. These declines come as these retailers grapple with rising costs of goods, utilities and staffing, while simultaneously striving to maintain affordable prices for consumers.

UK food and drink price inflation soared to a 45-year record of 19.2% in March 2023, as per the Office for National Statistics data, and remained consistently high at 19.1% in April. This has put tremendous pressure on retailers, and rivals Aldi and Lidl have also reported shrinking profits after investing to keep store prices stable.

Farmfoods, which employed an average of 4,767 people last year, saw its wage bill rise to £86.9m from £81.8m. Eric Herd, the firm’s managing director, holds majority ownership, with around 69% of the equity. He inherited the business, which started as his father’s Aberdeen meat processing firm in 1955. The next largest shareholder is his son George, with other family members also holding shares.

In a statement, the directors highlighted that the company continued to trade profitably throughout 2022, notwithstanding the increasing cost pressures. Directors’ remuneration rose to £2.74m, from £2.05m, with the highest-paid director’s salary climbing from £355,000 to £600,000.