Profits of Europe's largest bakery and pastry group to increase by €84 million
September 17, 2024
The company, created two years ago, saw its turnover increase by 12.% to 620 million euros and its gross profit increased by 18.2TP3T to 83.9 million euros.
Sales volume, on the other hand, remained stable at +0.2 1TP3Q, which is "better than expected", given that the bakery sector has experienced increases in the cost of living and inflationary costs of raw materials.
The company underwent structural changes during the reporting period, including a €5 million investment to improve productivity and a change in product range to reflect changing consumer tastes.
3 million euro online cookie service
Cost control also played a major role in improving adjusted EBITDA performance compared to [the] previous year, the company said.
The expansion of cookie production capacity at the Wirral site in the UK has been funded to the tune of €2.9 million and is expected to be operational by mid-2024.
The activity in Spain recorded a 6.5 % increase in volume and a 22.9 % increase in turnover. Its Peniche plant, also located in Portugal, was in operation during the year under review, with the “emblematic Pastel de Nata” product completing its portfolio in European markets.
Saudi Arabia and the United Arab Emirates have been identified as two of the fastest growing markets in 2023.
Baker & Baker has focused its efforts on creating better restaurant relationships and collaboration opportunities in 2023. This has enabled it to increase its revenue.
European bakers target US
One of the most profitable collaborations is a licensing agreement with Mondelez for Cadbury Crunchie donuts and Cadbury Chocolate Orange biscuits.
John Lindsay, CEO of Baker & Baker, said: “Baker & Baker has a strong position in the sweet baked goods category. Our expertise and market knowledge enable us to differentiate ourselves from our competitors and drive sales across all retail and foodservice channels.”
The cost of living crisis and inflation across all food categories were also notable features of 2023. Maintaining volume performance despite these challenges is a major success.
More on this later European Bakers Target US Bakery MarketAfter identifying a need for par-baked artisan baked goods in the area, it was decided to expand physical operations.
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