Rising costs have forced the UK arm of bakery supplier CSM Ingredients into the red, despite its sales rising by 5% in 2023.
In its full accounts for the year ended 31 December 2023 filed to Companies House, the bakery ingredients supplier had net sales reaching £54.2m compared to the £51.5m recorded the previous year.
However, significant increases in materials and energy prices last year resulted in a pre-tax operating loss of £1.4m for CSM Ingredients, which posted £920k operating profit in 2022. Gross profit margin in 2023 was down to 12.5% from 18.6% the year prior.
Meanwhile, tighter controls on selling, general and administrative expenses helped it decrease its distribution and admin expenditure by 6.4% to £8.1m, while its attrition was also reduced to 13.5% (2022: 15.3%). As of the end of 2023, the company employed a total of 109 staff across its Manchester production facility and office in the Wirral.
Sweet treat supplier Baker & Baker, which separated from CSM Bakery Solutions in 2021, also saw profits dampened by rising commodity prices last year while sales leapt 12.8%.
CSM Ingredients supplies a wide range of products to the baking industry including food solutions for industrial bread manufacturers. Among these are bread ingredients, fats, oils, and pastry mixes, as well as fruit, fillings, and coatings. Back in June, CSM launched its Slimbake emulsion to enable fat reduction of finished bakery products, along with E-Free Magarine for ‘clean label’ lamination applications.
It is also the sponsor of annual charity fundraising event, National Doughnut Week, which will hold its next edition between 10 and 18 May 2025.
In an interview with British Baker earlier this year, general manager for CSM Ingredients’ UK & Ireland operations James Dedman highlighted heritage, quality, innovation, and customer focus as the four pillars of strength for the company. “Over the last four years, we’ve added 240 new ingredients into our global portfolio – all natural and sustainable,” said Dedman, adding that there are 4,500 formulations based on those ingredients that can be applied.
A recent change at the global headquarters in Luxembourg sees CEO Aldo Uva step down from the role he’s held since April 2021, with CSM Collective chairman Gabriele Del Torchio taking over all responsibilities.
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