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July 8, 2016

Tough UK trading hits Warburtons profits

UK baker Warburtons has reported a fall in profits for the 2014-15 financial year against a backdrop of continued "difficult trading conditions and volume decline in the wider bakery market".

UK baker Warburtons has reported a fall in profits for the 2014-15 financial year against a backdrop of continued “difficult trading conditions and volume decline in the wider bakery market”.

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Warburtons said operating profit for the 52 weeks ended 26 September 2015 fell by 2.4% before exceptional items to GBP35.4m (US$45.7) from GBP36.3m previously. The company said this was “mainly due to the pressure on gross profit margin in our core product areas”. Profit before tax of GBP38.7m was lower than the previous period profit before tax of GBP78.3m. 

Turnover increased by 0.7% to GBP551.5m.

Warburtons said the results were in line with expectations and that the board “views the outcome as satisfactory in the current economic environment”.

The baker said the main focus of the business will focus on “growing the share of the bakery market in Great Britain”, which it said would depend on developing new product ranges “alongside our current market leading lines”. “The new Bagel Thins production line was introduced to further broaden our range of bakery products following the success of Sandwich Thins in previous years.”

Gluten-free sales have continued to grow “and we will look to introduce further new products to meet the increasing consumer demand in this area”, Warburtons said.

Chairman Jonathan Warburton said: “Our performance has remained stable… the performance reflects our continued focus on breakthrough innovation, quality and service in a very competitive marketplace.”

Mr Warburton said: “As the number one bakery brand in Britain, we are committed to growing our share of the bakery market by developing new products alongside our current leading lines. Our continued investment in our people and infrastructure ensures we are focused on meeting the needs of changing consumer trends.  This focus, along with our family ownership structure, means we are uniquely positioned to invest for the long term – making decisions today that we believe will contribute positively in the future.”

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Free Whitepaper
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What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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