New product launches and manufacturing improvements have helped sweet bakery supplier Baker & Baker boost profits.
According to its latest financial accounts, the UK arm of the European company, which has its headquarters in the Wirral, reported gross profit of £31m for 2024 marking an 8.7% increase compared to the previous year.
Adjusted EBITDA – which excludes some one-off, non-underlying items incurred due to restructuring activities and divestments – leapt by 11.4% to reach £14.7m.
Profit growth was driven by a positive shift in product mix and effective measures to improve efficiency in operations, said Baker & Baker. It noted that this had helped offset the 3.7% decline in product volumes experienced by the wider group during the year, due to rising raw material costs and other inflationary effects.
The manufacturer highlighted how it had continued an upward trajectory in profit since its formation as a sole bakery products business in 2021, when it separated from CSM Bakery Solutions.
Revenue in the UK, however, remained relatively flat at £251.3m having risen by 12.8% rise between 2022 and 2023, while group sales across Europe grew slightly in 2024 to €623.5m (£539.3m).
“We are pleased to have delivered another year of solid financial performance across the Group, despite facing a series of geopolitical headwinds and fluctuating consumer confidence,” commented Baker & Baker group CEO Matthew Acheson, who succeeded John Lindsey in the leadership role at the start of this year.
“2024 saw continued inflation throughout the bakery industry, most notably in the price of cocoa, which has affected many bakery categories. We have worked closely with our customers to manage these turbulent inflationary effects,” added Acheson.
To help strengthen its European operations, Baker & Baker made a series of strategic investments totalling around €14m (£12m) last year across its 12 manufacturing sites, focussed on productivity, growth, and sustenance projects.
Among these was a new £2.9m cookie line at its Wirral site, while it also installed a new chocolate system at its Bradford site. This helped it diversify its product offering, such as with the new Milka chocolate clusters, Milka cookies, and Milka chocolate topped brownies created via its partnership with Mondelēz International. The branded sweet treat trio was launched into continental Europe, seeing initial strong growth in France during the first half of 2025, it revealed.
“Baker & Baker remains a clear leader in the American sweet bakery category in Europe, and our customers trust our expertise and market insight to drive sales across the retail and foodservice channels,” said Acheson. The manufacturer has also developed its non-European footprint, growing its customer base across the UAE, Saudi Arabia and other Middle Eastern markets.
Additionally, Baker & Baker unveiled a new Group ESG strategy in 2024, underlining its commitment to improved sustainability performance. ESG initiatives delivered last year included preparation for EUDR compliance, investment in a WRAP water stewardship project in East Anglia, and submission of net zero targets to the Science Based Targets initiative (SBTi).
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