UK: Burton's Foods quadruples net profit
By Sam Webb | 10 October 2011
UK biscuit manufacturer Burton's Foods has quadrupled its annual profits after its licence to make products for Cadbury drove an increase in sales.
The company, which owns brands including Maryland cookies, Dodgers and Wagon Wheels, and bakes Cadbury chocolate biscuits under licence, posted a net profit of GBP13.1m (US$20.6m) for its financial year ending 1 January 2011 - up from GBP3.6m the previous year.
Burton's also enjoyed increased turnover, rising to GBP3.2bn from GBP3.1bn in the same period in 2010, and a rise in operating profit to GBP15m, up from GBP5.9m.
Jim Green, the company's finance director, said the positive results were down to the success of the Cadbury licence, in which turnover increased 26%, improved operational efficiency and a "significant reduction" in administration expenses.
He added: "The company continues to drive down unit cost, recognising overcapacity in the industry.
"We remain confident that our current level of performance will be maintained in the future and that our ability to develop great innovative new products will continue to distinguish us from our competitors."
Green did however note that input costs continue to be affected by the rising price of commodities, particularly cocoa and dairy products.
Sectors: Confectionery, Financials, Snacks
Companies: Burton’s Foods, Cadbury
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