Baker & Baker’s revenue grew by 12% in 2023, with its gross profit also seeing a healthy rise to €83.9m (+18.2%) on the year prior.
Volume growth of 0.2% was ‘better than expected’ given both the cost-of-living crisis and raw material inflation.
The business’s cash position has also improved significantly, reaching €30.3m at the end of 2023.
Last year also saw the bakery business making several major investments, including €5m in productivity enhancements, a shift in product mix to address changing consumer preferences, and its £2.9m investment into the Wirral cookie line which became operational this year.
The company also acquired its Peniche facility in Portugal, with its Pastel de Nata product going live in 2023.
Spain has delivered especially strong growth numbers within Baker & Baker’s European market, with a 6.5% rise in volume and 22.9% in revenue.
The producer has also been growing its foothold, with several market expansions within the Middle East. In 2023, the UAE and Jordan became growth markets for Baker & Baker, and more recently, Saudi Arabia with its first sales made this year.
A fundamental part of its sales growth has been NPD, particularly through its exclusive licensing partnership Mondelēz. Notable product launches included its Cadbury Crunchie Doughnut and Cadbury Chocolate & Orange cookies.
The business has also made progress on its ESG journey, developing a climate strategy and establishing a net zero target of 2040 at group level.
John Lindsay, Baker & Baker CEO, said the financial performance for 2023 is an excellent springboard for further growth across the group as it continues to seek new markets.
“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,” he added.
“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.”
In other news, Food Manufacture has summarised the biggest F&B trends to keep an eye out for this Halloween.
