Bakery products firm on the rise as profits soar
A European bakery product manufacturer has reported growth in revenue, gross profit and adjusted EBITDA in its financial results for 2023.
Baker & Baker operates in markets throughout Europe, the Middle East and North Africa.
In the UK, the company employs approximately 1,400 people across four locations.
With multiple production facilities, Baker & Baker specialises in manufacturing bakery products for both private label and branded lines.
In the East Midlands, the company’s Daventry site at Drayton Fields Industrial Estate employs 175 people.
The firm reported a revenue growth of 12% to €620m, gross profit growth of 18.2% to €83.9m and adjusted EBITDA (excluding non-underlying items of €11.4m) of €26.5m – an increase of 24.7% on prior year.
Baker & Baker made several structural changes in 2023, including a €5m investment in productivity improvements and a shift in product offerings to adapt to changing consumer preferences.
Cost management also contributed to the improved adjusted EBITDA performance.
Among its capital projects, the most significant was a £2.9m investment in expanding cookie production capabilities at its Wirral facility, with the new line expected to become operational by mid-2024.
In its European markets, Spain achieved particularly strong results, with volume growth of 6.5% and a 22.9% rise in revenue.
The company also acquired its Peniche facility in Portugal, which became fully operational in 2023, adding the iconic Pastel de Nata to its product range across Europe.
John Lindsay, CEO, said: “Baker & Baker is a clear category leader in American Sweet Bakery, and our expertise and market know-how offers a key point-of-difference with customers, allowing us to drive sales throughout the retail and food service channels.
“2023 was also characterised by the cost-of-living crisis and inflation across all major food categories, and so to have maintained volume performance in the face of these market challenges represents a significant success. Our financial performance in 2023 provided an excellent platform for further growth across the Group, and as we seek to expand into new markets in 2024.”