Hovis sales have taken a big hit, with its revenue tumbling from £478 million in 2023 to £440 million in 2024, according to its latest Companies House report.
The bakery manufacturer’s pre-tax losses went from £4.8 million to £8.7 million - a drop of 81% over the period between 2023-2024. EBITDA also saw a fall from £20.9 million to £18.7 million, which the company has attributed to lower revenue and higher distribution expenses.
£8.8M invested last year
Hovis remarks that overall bread share has remained stable, despite significant price inflation and the on-going cost of living crisis. It has says it will continue to focus on “managing the cost base in a highly competitive market”.
The business is continuing to invest into its bakeries and logistics network with £8.8 million having been injected over the course of the year; and it has strengthened customers partnerships with long term agreements. This includes the launch of a new distribution partnership with a UK retailer which uses the Hovis direct to store network to improve service, shorten lead times and reduce food miles for third party bakery goods.
Last year also saw the launch of a range of premium breads, including the Hovis Bloomer range and it continues to work collaboratively with Modern Baker to support the expansion of SuperLoaf and its Super Bakery franchise across the UK & Ireland.
Its Hovis Farmhouse Batch also made it ways to shelves and according to the business has been among its most successful launches.
The Hovis merger
Earlier this year, rumours surfaced that Associated British Goods, which owns Kingsmill parent company Allied Bakeries, was in talks with Hovis owner Endless LLP over a deal. And Hovis has also confirmed that it is having discussions over a potential merger within its latest Companies House report.
“Following recent media speculation, a potential third party confirmed that discussions were being held with Endless LLP regarding a possible transaction. At the present time these discussions are ongoing, no formal Sale and Purchase agreement has been signed and the completion of any transaction is expected to be subject to UK regulatory processes,” the statement reads.
“The Directors have considered the likelihood of whether the potential transaction will complete within the going concern period and, based on legal advice received, are of the view that a transaction is unlikely to be concluded in the going concern period.
“All diligence discussions with the potential third party have been held in the presence of Competition lawyers, and there has been no indication that there will be any changes to the current trade or structures pertaining to the Hovis Group.”
Hovis was acquired by Endless LLP in 2020 following a protracted bidding war.
