Profits at Gail’s owner Bread Holdings have increased to record levels despite the group suffering a dramatic slump in sales as it struggled to trade throughout the pandemic.
A boom in demand for premium bread throughout lockdown helped the business as it focused on selling the Gail’s and Bertinet brands in supermarkets.
EBITDA increased 5.6% to £14.4m and pre-tax profits arose by almost £1m to £4.4m in the year ended 28 February 2021, according to newly filed accounts.
However, revenues slumped 27% to £84.5m as the wholesale division, which supplies restaurants, hotels and contract caterers, ground to a halt for large parts of the year, with the Gail’s retail estate also forced to temporarily shutter its stores.
“Considering the challenges, the group proved resilient, with trading improving progressively throughout the year in part by the wholesale business growing its retail channel, including several large supermarket chains and burgeoning consumer delivery operators,” Bread said in the accounts.
The group, which was acquired by US private equity firm Bain Capital in September, also adapted the Gail’s outlets to operate a full take-out offering, with click & collect and DTC options, and also opened five new sites.
Bread had enjoyed a record year for sales and profits leading up to the coronavirus outbreak.
Founder and CEO Tom Molnar previously told The Grocer that 2020 had been one of the hardest years the business had ever known.
Bread Holdings has grown rapidly since an investment by Luke Johnson’s Risk Capital in 2011, when sales were just £25m.
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