SUBSCRIBE

Inside food & drink manufacturing

Sectors > Ambient foods

Baxters posts profits despite ‘volatile’ retail market

Post a comment

By James Ridler+

06-Jan-2017
Last updated on 10-Jan-2017 at 14:44 GMT2017-01-10T14:44:47Z

Baxters posted profits in 2016, despite a challenging retail market. Image Copyright Richard Webb
Baxters posted profits in 2016, despite a challenging retail market. Image Copyright Richard Webb

Food manufacturer Baxters Food Group has reported a boost in profits in the 2016 financial year, despite a ‘volatile’ and challenging retail market.

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

Post a comment

Comment title *
Your comment *
Your name *
Your email *

We will not publish your email on the site

I agree to Terms and Conditions

These comments have not been moderated. You are encouraged to participate with comments that are relevant to our news stories. You should not post comments that are abusive, threatening, defamatory, misleading or invasive of privacy. For the full terms and conditions for commenting see clause 7 of our Terms and Conditions ‘Participating in Online Communities’. These terms may be updated from time to time, so please read them before posting a comment. Any comment that violates these terms may be removed in its entirety as we do not edit comments. If you wish to complain about a comment please use the "REPORT ABUSE" button or contact the editors.