Total gross profit of the firm was £78.7M – up from £67M in 2015. Baxters’ earnings before interest, tax, depreciation and amortisation (EBITDA) grew to £20.7M from £11.5M.
The impact of Brexit vote had also been beneficial, claimed Baxters, as a significant proportion of the group’s profits were generated outside of the UK.
However, Baxters said: “The volatility of food retail markets remained challenging, particularly in the UK and Canada.
‘Market pressures’
"The market pressures of continuing food deflation and the difficulties of managing consumer expectations for strong price promotions against a backdrop of input price rises, remain significant challenges for the business.”
The firm revealed revenues had risen 10.2% to £248.6M in its financial results for the 10 months to April 2 2016. This was helped by expanded operations in the US, following the acquisition of Wornick Foods in 2014.
The company’s operating profit more than tripled in 2016, hitting £12.5M last year, up from £3.8M in 2015.
“This has been a successful year in which we have not only absorbed costs and continued to invest in large projects for future value, but also improved overall financial performance,” Baxters said.
‘Improved overall financial performance’
“These financial results reflect the positive contribution the Wornick operations have made to the group in terms of revenue, EBITDA and operating profit, but also the challenges that exist in the underlying business – with respect to sales volumes and margin pressures.”
Scotland-based Baxters produces canned soups, jams, pickled vegetables and chutneys. It operates eight factories across the UK, Canada, Australia and Poland.
It employs about 1,500 people worldwide, with about 700 staff working at its Fochabers site in Moray.
Baxters Food Group 2016 results – at a glance
Revenues: £248.6M
Total gross profit: £78.7M
EBITDA: £20.7M
Operating profit: £12.5M