A strategy of focusing on “core operations” saw UK-based soup maker Baxters Food Group swing back into the black in its recent most financial year.
In its latest filing at Companies House, Baxters booked net profit of GBP1.5m (US$2.4m) for the 12 months to 30 May last year – against a net loss of GBP1.7m a year earlier.
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Turnover was up 5.7% at GBP124m, while operating profit grew more than five-fold, rising from GBP1.2m to GBP6.9m.
“During the year, we consolidated our North American operations and fully integrated our successful Australian acquisition. We did not acquire further but concentrated on the recovery of core operations and margins,” Baxters said.
Last year, Baxters bought Sole Mio, an Australian maker of marinated vegetables and pestos.
However, while Baxters said the results reflected “a significant recovery in our group’s performance year-on-year”, the company said it would be a year before it returned to previous profit levels.
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By GlobalData“This recovery is only partial and we are still operating below our EBIT and EBITDA results of two years ago,” Baxters admitted. “The continuing economic recession means that we do not anticipate returning to historic performances for another 12 months.”
