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Genius Foods reports £2.4m loss from continuing operations

By William Dodds

- Last updated on GMT

Genius Foods produces a wide range of gluten free baked products. Credit: Getty / Dougal Waters
Genius Foods produces a wide range of gluten free baked products. Credit: Getty / Dougal Waters

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Gluten free manufacturer Genius Foods has reported its results for the year ending 31 December 2022, with the bakery business posting a loss of £2.4m from continuing operations.

Genius is owned by German firm Katjes Greenfood, which acquired the baker in June 2022 for an undisclosed amount. Katjes produces a wide range of plant-based products.

According to Genius’ accounts filed for that same year on Companies House, it achieved revenues of £31.7m, a 6% increase when compared to 2021. Elsewhere, UK retail sales increased 3.6% year-on-year after experiencing a sharp decline in 2021, a trend the company put down to its increased focus on UK markets.

However, Genius incurred £11.9m worth of administrative expenses, which contributed to losses from continuing operations of £2.4m for the period, more than the £1.5m loss the business experienced in 2021. Income from continuing operations relates to a company's core activities and excludes profit from discontinued operations and tax effects.

The firm’s comprehensive profit for the year was £383,000, a number that includes a gain of £11.3m from the redemption of preference shares following the takeover by Katjes.

A strategic report that accompanied the results said that the inflationary pressures present during 2022 had “significantly impacted the business”​.

In response to the challenge of rising input costs, Genius implemented customer price increases and created an improvement plan which was actioned throughout 2023. Furthermore, the report said that the acquisition of Genius by Katjes provided “additional stability and focus for the group​”.

Commenting on the results, a spokesperson for Genius added: "Under our new CEO, Adam Smart, Genius has strategically refocused on the UK, exiting the US and Australia, and on its core values of quality and taste, winning multiple Free From Food Awards. Our new brand platform, Genius Deliciously Gluten Free, with the largest media investment in the free from category in five years, is driving growth in the UK market. In 2024, our innovative pipeline and enhanced communications plan aims to further reach the 20m potential gluten free consumers in the UK."

Based in Edinburgh, Genius produces a range of gluten free baked products that range from bread to sweet treats. Its goods are stocked by numerous major retailers in the UK, while it also operates a foodservice arm that supplies restaurants and pubs across the country.

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Related topics Bakery Operations

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