Maple Leaf Bakery UK has reported improved financial results for the third quarter of 2011, with profit up 3%.
As part of Canada Bread’s Frozen Bakery division, which produces the New York Bakery Co range, the company reported increased profits on the previous year of 3% from £78.2m ($126.1m) to more than £80m ($129.2m). For the third quarter to 30 September 2011, sales volumes have increased in its UK operations due to its ongoing growth in bagel sales.
Richard Lan, president and chief executive officer of Canada Bread, said: “While our volumes increased in the quarter we continue to feel the impact of high raw material costs, which we largely offset through cost reductions and improved operating efficiencies.
“Our UK business is benefiting from manufacturing changes to focus on core categories and increase profitability. As commodity markets stabilise, we will continue to seek opportunities to drive volume and margin growth through reduced costs, innovation and product sales mix.”
Adjusted operating earnings in Frozen Bakery for the third quarter also increased to £1.6m ($2.6m) from £1.3m ($2.1m) last year, largely driven by improved margins in UK bakery operations.
Maple Leaf Bakery UK marks part of its success in the third quarter to the relaunch of its New York Bakery Co brand back in January. Backed by a £2.4m marketing campaign, it revamped its overall look and taste, complemented by a new advertising campaign, which has increased volume sales.