Warburtons has continued to outperform its bakery rivals to push sales and profits to new heights as a focus on innovation paid dividends.
Revenues at the group increased 4.2% to £741.1m in the year to 28 September 2024, with volumes defying the structural challenges in the wrapped bread segment of the market by rising 2.9% year on year.
Operating profits also nudged up from £32.5m to £33.6m thanks to improved margins following efficiency projects. The bottom line has bounced back strongly in the past two years after being hit by massive inflationary pressures in 2022.
Chairman Jonathan Warburton attributed the success to investment in product quality and NPD.
“The wrapped bakery market remains very competitive, with underlying long-term declines in bread being offset by growth in other wrapped bakery such as crumpets, pittas, bagels, thins and rolls,” he said.
“Our focus is not only to deliver the best-quality products and service but to also launch category-leading innovation to meet changing consumer trends. As a family business, we take a long-term approach and this growth has been further supported by our investment in our brand, our people, and our operations.”
UK consumers are moving away from standard sliced bread, which has driven a 2.3% decline in the overall wrapped bread category to £2bn in the latest year [NIQ 52 w/e 22 February 2025].
But while supermarket sales of Hovis, Kingsmill and Roberts tanked in the period – falling 9.4%, 25.9% and 28% respectively – Warburtons increased value by 7.8% to £599m.
The brand, which is the UK’s fifth-largest as measured by The Grocer’s Britain’s Biggest Brands survey, invested £33.5m in its facilities and distribution fleet in 2023/24 in a bid to maintain price competitiveness and offset rising input costs.
“In a backdrop of political and economic uncertainty, the company has maintained its key strategic priorities of the highest product quality possible, delivering best-in-class customer service, growing market share in our key categories, implementing efficiency projects to offset input costs and investing in all our people,” Warburtons added in the accounts filed at Companies House.
“We are pleased that these long-term objectives have translated to improved financial performance during the period.
“The cost of living crisis has impacted consumers for the last few years – our product range allows the UK population to feed their family at a modest cost.”
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