Baxters Food Group, the UK family-owned soup maker, saw its annual operating profit drop significantly, hurt by one-off costs of GBP3m (US$4.3m), the company said today (13 February).
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The soup-to-sauces group posted a drop in operating profit to GBP0.6m for the year to 31 May, down from GBP7.5m in the previous year.
Sales increased by 2.1% to reach GBP116.4m from GBP113.9m in the 2007 period.
Audrey Baxter, chairman and chief executive, said: “These figures reflect what has been one of our most challenging years in recent times. Economic factors contributed significantly, we found ourselves having to absorb many unplanned cost rises as raw material prices soared due to unseasonal weather in the summer of 2007.
Baxters blamed global failed harvests on its poor results and a collapse in demand for the company’s summer-orientated products.
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By GlobalDataThe company said the integration of Canadian firm CanGro Soups into the business has taken longer than expected and meant the firm incurred one-off costs.
Baxter added: “Our retail outlets as recently announced have suffered like so many others in that sector but we have addressed those issues and all stores will remain open.
“Our plans for the future are more important than dwelling on the past, as always new product development is at the core of our business strategy.”
