Low consumer confidence and “aggressive” promotion from branded competitors has led to a 5.1% decline in sales for the UK’s largest manufacturer of private-label cakes, BBF.
Sales fell £12.2m to £226.3m, the business reported in fresh filings to Companies House, as volumes were hit by higher prices.
The decline in sales, alongside a squeezed gross margin, hit BBF’s profits. Underlying operating profit for the year to 28 June 2025 fell from £16.6m to £13.6m, with pre-tax profit down by £2.9m to £10.2m for the Endless-owned business.
“The group strives to mitigate inflationary pressures with its own efficiency initiatives but again this year, with the scale of labour inflation in particular, had little alternative to pass on inflation to its customers,” a statement from directors attached to the accounts said.
Alongside low consumer confidence and “aggressive branded promotional activity”, the cost price increase hit volumes. BBF added “a small number” of customers’ contracts were dropped as they were deemed no longer commercially viable.
The tough year’s trading partially reversed gains made in 2024, when the company registered sales growth of 7.5%.
The company said the bakery category was likely to continue to face inflationary labour headwinds, and has planned for several years’ increased capital investment in automation.
BBF’s directors also pointed to achievements in the year including a 26% reduction in accidents across the group, new long-term agreements with two strategic customers, and the commissioning of a new production facility at its Hull site.
The company also made strong progress on its climate strategy, with carbon emissions reduced 9.6% year on year, thanks in large part to a drastic reduction in refrigerant emissions.
BBF has now had its Science Based Targets initiative (SBTi) carbon goals verified: it aims to cut Scope 1 and 2 emissions 58.8% by 2034, alongside a 35% reduction in Scope 3 emissions in the same period, and reach net zero by 2050.
Post-year end, BBF has commissioned a new Blackburn warehouse to increase efficiencies further. It operates from four sites in the UK and one Polish site, and employs 1,500 people across the two countries.
BBF, formerly known as Bright Blue Foods, was acquired by private equity firm Endless in 2015. In subsequent years the company has expanded with the acquisition of Greencore’s cakes and desserts division in 2018, and bakery supplier Sargents in 2021.
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