Gluten-free bakery supplier Dr. Schär UK enjoyed its most profitable year on record in 2024 with sales growing 8%.
Latest financial results filed for the UK arm of the European manufacturer, covering the year ended 31 December 2024, showed turnover had increased from £41.8m in 2023 to £45.1m.
It revealed that its foodservice channel had once again delivered the highest growth in the year of 28%, with products made at its Glasgow site – acquired in February 2022 – improving its mix of lines made at its factories on the continent. These imports into the UK had also benefitted from a positive movement in exchange rates in 2024 versus the year prior, added Dr. Schär.
Retail sales had risen by 7% while revenue was up by 6% for products sold at the gluten-free sections of pharmacies. The company noted its pharmacy gains had come despite challenges in the healthcare sector as the gluten-free prescription policy changed across the country.
Among the gluten-free products in Dr. Schär’s range sold in the UK are loaves, rolls, buns, flatbreads, crispbread, pastries, panettone, pizzas, crackers, cookies, muffins, biscuits, and cake.
With careful management of costs at its Glasgow manufacturing site as well as at its head office in Warrington, Dr. Schär UK saw profit for the financial year catapulted from £20k in 2023 to £1.6m in 2024. It expanded its workforce too, with average number of employees up to 87 compared to 83 the year prior.
In addition, Dr. Schär UK welcomed a change of management last year with managing director Bradley Grimshaw – who previously discussed the firm’s growth plans with British Baker – replaced by Declan Lockett. This marked an internal promotion for Lockett, having been with the company since May 2017 including his most recent role as global market activation director.
“Dr. Schär closed the financial year 2024 with a global turnover of €624 million [£529m], up 11% on the previous year,” commented Lockett. “As a subsidiary, the UK played a significant role, contributing approximately 8% to the global turnover, exceeding our plan and delivering our most profitable year on record.”
The new MD noted that the strong performance has continued into the first half of 2025, and expressed confidence in the company’s “ability to realise ambitious plans” for continued growth across retail, healthcare, and foodservice channels. ”Our financial stability has enabled us to continue with substantial investment for the future in the Glasgow-based bakery we acquired in 2022, improving our fresh product offering, creating further jobs, and better serving the needs of UK consumers,” he added.
Warburtons remains the number one player in the UK’s gluten free bakery category, with latest sales figures reporting 17.1% year-on-year growth [Nielsen Scantrak data for the 12 weeks to 23 March 2025].
Meanwhile, rival brand Genius Foods has posted a third straight year of operational losses up to 2023, although its new owner Katjes Greenfood has since extended a series of multi-million-pound loans to help get it back on track. As such, the Edinburgh-based supplier is now predicting that 2025 will be a “transformational year”.
1 Readers' comment