Wirral bakery giant Baker & Baker, which produces donuts, cookies and cakes and sells across Europe, reports losses more than doubling to £8.6m amid higher raw material costs, particulate chocolate. Tony McDonough reports
Wirral bakery giant Baker & Baker is reporting widening pre-tax losses amid higher raw costs and weaker consumer demand.
Baker & Baker employs around 650 people at its factory and headquarters in Bromborough. In total it employs more than 2,400 people at 12 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 and specialty breads.
In its account for the 12 months to December 31, 2025, just posted in Companies House, Baker & Baker reported flat revenues of £535m and pre-tax losses more than doubling to £8.6m. The firm reports in euros and LBN has converted to sterling at current rates.
Writing in the annual report, group chief executive Matthew Acheson, said volume in 2025 decreased by 5.6% reflecting reduced consumer demand in certain categories following higher selling prices implemented by retailers.
“These pricing actions reflected cumulative inflation pressure across labour, raw materials and other costs,” he added.
Matthew also said: “Gross profit decreased by 7.5% compared to the prior year with the primary driver being the impact of high material costs, in particular chocolate prices.
“While operational efficiencies and pricing actions partially mitigate these pressures, cost inflation continued to impact margins during the year.”
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However, despite the losses and cost pressures, Matthew concluded with an upbeat tone, saying: “the directors expect to continue the successful growth and development of the business in the forthcoming year through a combination of organic growth, new product development initiatives and continuous improvement in efficiency.”
Until April 2021 Baker & Baker was a division of US-based CSM Ingredients but now operates as an independent business.