UK baking giant Hovis has recorded a £19m loss in its second year of trading since Premier Foods wrote off part if its investment into the company.
The bakery business has struggled to hold on to its market share since Premier Foods cut part of its stake, which amounted to £8m.
Accounts filed at Companies House revealed that Hovis reported pre-tax losses of £19m in the year to 31 December 2015, as bakery revenues plunged 12.2% to £343.3m.
Hovis stated: “The market for bread and bakery products remains highly competitive, with sales margins under pressure due to the continuing broader changes in the dynamics of the supermarket grocery sector.
“Despite savings in the supply chain, the retailer deflation reduced gross profit above the impact of the volume loss.”
Overall revenues had been £565.3m in 2014, but Hovis transferred its milling business to Rank Hovis Milling at the beginning of the financial year, meaning comparative bakery division revenues were £391m in 2014.
Hovis has suffered from falling sales in recent times in a category that continues to see core wrapped breads contract and prices reduce.
In September, Hovis added new products to its range – the Wholemeal & Tasty Spelt Loaf.