Warburtons boosted by falls in commodity prices

PROFITS at family-owned bakery Warburtons rose 9% last year in what chairman Jonathan Warburton said was a “solid operating performance in a difficult economic environment.”

The Bolton-based company – the company’s largest bakery chain – saw profits climb from £57.5m to £62.7m in the year to September 26 2009.

The company, which this year launched a new range of snacks as it broadened its product categories, was helped by a near £20m fall in raw material costs, from £176m to £157m.

The cost of key ingredients, such as wheat,  and also energy prices remain a key issue for Warburtons, with Mr Warburton noting that despite a fall in the early part of the year in question, there was “unprecedented increases” in the second half.

Turnover in the year was 2.6% from £498m to £510m, while staff numbers rose from 4,809 to 4,921 as new depotsand a bakery in Bristol were opened.

Since the year-end the company has announced some redundancies at its Bolton base as part of a cost cutting exercise.

In his report to the accounts, Mr Warburton said: “The business has continued to focus on the quality of the product and service recognising the need for an increased level of commercial support for our consumers within a very competitive marketplace.

“The business remains focused on growing a share of the bakery market in Great Britain. We have further developed our national footprint in the year with the opening of a bakery in Bristol. The business is well placed to support growth going forward.”

After last year’s bumper £35.6m payout to family shareholders, Warburtons did not pay a dividend this year.