Giant crumpets push Warburtons’ profits up to £35m

Warburtons

Giant crumpets, other new products and quality control have helped Bolton-based bakery giant Warburtons nudge profits up from £33m to £34.6m.

Although the company’s revenue fell from £551.5m to £526.3m in the year to September 2016, the company, owned by the fifth generation of the family which founded the baking business in 1876, successfully overcame the highly competitive nature of the sector,

Chairman Jonathan Warbuton said in his strategic report that key to its “satisfactory results in an increasingly competitive wrapped bakery market” was the introduction of new product ranges, including giant crumpets, supported by an award-winning marketing campaign which featured The Muppets.

“We are exposed to commodity markets, principally wheat, energy and foreign currency,” he said. “The level of volatility remains significant within these cost areas, and. with the consumer environments remaining challenging, cost recovery is difficult.

“The profit for the period has been achieved only through continued focus on the quality of our product and service supported by the continued development of new product ranges.

“Other recently introduced product ranges have continued to grow, in part compensating for the general decline and increasingly competitive nature of the wrapped bread market.”

At the end of the period the company held cash at £56.7m, compared to £34.2m the prior year. No dividends were paid out for the period.

The average number of employees fell from 4,588 to 4,522.

Meanwhile, the company contributed £490,000 to its community and charity grants programme distributed through its partner, The Charitable Aid Foundation.

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