Baker & Baker has published strong financial results that underline an encouraging business outlook for the standalone European bakery products manufacturer.
The business reported turnover of €450M and growth of 14% during the first 12 months of operation.
Set against a backdrop of rising commodity prices and fluctuating COVID-19 restrictions throughout Europe in 2021, Baker & Baker’s agile business model has been able to overcome these challenges and demonstrate a clear path for future growth.
Following a significant business separation via the sale of CSM Ingredients in April 2021, Baker & Baker has consolidated its position as a leading supplier of sweet bakery products within the retail and food service segments across all key European markets.
A number of significant product launches has strengthened the company’s growth curve; including its eye-catching ‘Boomies’ Berliner donut, and the lower fat and calorie Simpsons donut range.
Record growth in Baker & Baker’s licensing portfolio also delivered a significant proportion of its 2021/2022 financial performance. Via its exclusive bakery partnership with Mondelez, Baker & Baker manufactures and sells a broad range of donuts, muffins, cookies and brownies under the iconic Oreo, Cadbury, Milka and Daim brand names.
The Mondelez licensing portfolio delivered record retail sales in excess of €100m in 2021, and continued consumer demand for indulgent bakery products with strong brand resonance is projected to deliver further growth in 2022. Baker & Baker also has an exciting NPD pipeline for its licensing range this year, with a number of product launches to be revealed in due course.
Baker & Baker’s future expansion plans will also derive from deepening its presence in Eastern European and other emerging markets.
In 2021, Baker & Baker opened an office in Dubai and appointed a senior sales team, headed up by Ryan Perera, to exploit new customer opportunities throughout the Middle East and North Africa. In 2022 and subsequent years, Baker & Baker is confident of building a strong customer base within these markets, given current untapped demand for high quality, branded bakery products.
Later this year, Baker & Baker is also preparing to open its first office in Poland, to serve customers both in-country and throughout other Eastern European markets.
Baker & Baker has continued to invest in its factories over the last year, most notably with the multi-million euro installation of bulk, liquid chocolate handling in Bradford and Delmenhorst in Germany, and product handling automation technology for bread at St Tirso in Portugal and cookie lines in Bradford.
John Lindsay, CEO of Baker & Baker, comments: “Our first year as Baker & Baker has been an incredible journey. Successfully completing a complex business separation during normal market conditions is challenging, but considering raw material inflation and the impact of COVID-19, we have demonstrated considerable resilience and agility to deliver an impressive financial performance.
“The expertise, commitment and hard work demonstrated by our colleagues during a turbulent period has also been critical in driving this growth.
“Our priorities for the forthcoming 12 months are to build on these solid foundations, with further investment in NPD and product extensions, growing our footprint in emerging markets and maximising the potential of our licensing range with Mondelez.”