Wirral bakery giant Baker & Baker, one of Merseyside’s biggest private sector employers, halves its losses as revenues rise 12% to £518m. Tony McDonough reports
Bakery giant Baker & Baker is reporting another big surge in annual revenues and halves its pre-tax losses.
Baker & Baker employs around 700 people at its headquarters and main manufacturing base in Bromborough in Wirral. Until April 2021 it was a division of US-based CSM Ingredients but now operates as an independent business.
It employs a total of 2,500 people at 12 European sites including Ireland, the Netherlands, Spain, Denmark, Italy, Portugal, Austria, Switzerland, France Germany and Belgium.
As one of Europe’s leading suppliers of bakery products, it produces donuts, muffins, brownies, cookies, cakes, specialty breads and viennoiserie categories.
According to its accounts for the 12 months to December 31, just posted on Companies House, Baker & Baker saw a 12% rise in annual revenues to £518m.Pre-tax losses came in at £7.77m, significantly down from the £14.1m reported for 2022.
Over the past couple of years the business has seen big rises in the costs of ingredients and energy. It has seen increases in both labour and IT costs. Its cost base remains high but it has partly mitigated this through prices increases for customers.
All the figures in the accounts are stated in euros and LBN has converted to sterling, at current exchange rates, for the purposes of this article.
2023 saw a number of structural changes to improve performance. This included investing more than £4m in productivity enhancements and a shift in product mix to address changing consumer preferences in the face of the cost-of-living crisis.
Among Baker & Baker’s capital projects was a £2.9m investment in the expansion of the bakery’s cookie capabilities in Wirral. The new cookie line becoming operational midway through 2024.
Within its European markets, Spain delivered particularly strong growth numbers, recording a 6.5% rise in volume and 22.9% in revenue.
Baker & Baker also acquired its Peniche facility in Portugal that came fully online in 2023, with its iconic pastel de nata product complementing the business’s portfolio throughout European markets.
Baker & Baker continue to expand into new markets, including its establishment in the Middle East, which began in late 2022. In 2023, the UAE and Jordan became growth markets for Baker & Baker, and paving the way for the business to enter Saudi Arabia.
Product launches under its exclusive licensing partnership with Mondelēz included its Cadbury Crunchie Doughnut and Cadbury Chocolate & Orange cookies.
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Chief executive John Lindsay 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.”
The account also show directors’ renumeration, including salaries, pension payments and other benefits, totalled £1.31m in 2023. The highest paid director received £620,000.