Turnover at Gail’s and Bread Factory owner Bread Holdings has risen 14% to break the £100m barrier.
Revenue from the business’ retail operations increased to £47.7m in the 52 weeks to 28 February 2019, up from £38.8m in the previous period. Gail’s turnover rose 23% year-on-year.
Bread Holdings, which opened 10 new Gail’s sites over the financial year, said the increase in retail revenue had been driven by a combination of store openings and like-for-like sales expansion.
Revenue from wholesale operations rose more than £8m to £68.3m, which the company attributed to integration of previous acquisitions and new wholesale customers. Bread Factory sales rose 11%.
Looking ahead, the company said it expected to open 10 new Gail’s in the coming year. The business has also invested in the Bertinet bakery it acquired in 2017, and recently expanded its main Hendon Bakery.
Although Bread Holdings said costs had been challenging over the year, it reported a 30% increase in EBITDA to £11.5m.
“The National Living Wage and some commodity price movements added cost pressure in the year,” stated the company. “Additionally, it has been a relatively uncertain time in the restaurant and hospitality sector, but our diverse customer base helps us to mitigate the risk.
“It has been a year where we have seen encouraging sales growth on both the wholesale and retail sides of the group.”
Bread Holdings said it was continuing to closely monitor the implications of Brexit, but pointed out it was largely a domestic UK business in terms of production and commercially. The company added that around 95% of its raw materials were from UK-based suppliers.