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Warburtons takes extra slice of profit with giant crumpets

Better than sliced bread - Warburtons
Better than sliced bread - Warburtons

Family-owned bakery business Warburtons has reported rising profits with the introduction of new products such as giant crumpets.

Company accounts for the 12 months to September 26 last year showed its pre-tax profits increased by 4.9pc to £34.6m.

It came as revenues dipped 4.8pc to £526.3m due to what the company called the “increasingly competitive nature of the sliced bread market”. Shoppers are spending less on sliced bread as they opt for alternative breakfasts, gluten-free substitutes and wholegrain loaves.

According to Kantar Worldpanel, the value of wrapped sliced bread sold last year fell 3.7pc to £1.4bn.

Bread with added protein
Bread with added protein

The introduction of products such as giant crumpets helped to compensate for the general market decline, Warburtons said, as supermarkets continue to squeeze margins and introduce their own in-store bakers. It said it would continue to invest in diversifying its product offering: last year it introduced bread with added protein to appeal to consumers seeking healthier options, and in January introduced a new Toastie Pockets line.

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The company is also struggling with a “significant” level of volatility of commodities such as wheat, energy and foreign currency, and added that as “the consumer environment remains challenging, cost recovery remains difficult”.

Bolton-based Warburtons, which is 140 years old and now in its fifth generation of family ownership, gave out no dividends during the period but reported a big increase in cash, from £34.2m to £56.7m.