Aldi supplier Geary’s Bakeries returned to double-digit growth last year, but has warned of the impact of soaring energy costs on top of mounting input inflation last year.
Total sales in 2021 were up 13.6% to £34.8m, driven by increased distribution of its Jason’s Sourdough bread, which listed in Waitrose last year and won new listings in Morrisons in May 2022 – with Sainsbury’s to be added in coming weeks.
MD Joshua Wesson said growth continued in 2022, up 20%, partly due to inflation recovery driving up pricing.
However, he said current business conditions “remain a challenge”, pointing to vast increases in energy prices.
“Energy is by far the most concerning, which at today’s prices, with no government intervention, could be more than eight times the amount we were paying in 2021.”
The accounts state that “recovering cost inflation from our key retail partners” would be key in mitigating this environment.
Additionally, recruiting staff remains “very difficult”, with the group adapting to find new and innovative ways to tackle the issue.
It said last year say it would invest more than ever into staffing, with pay awards of more than 10% over the 12-month period.
Last year the group’s operating profits reduced by £0.2m to £1.7m due to “significant” cost inflation in raw materials, especially the cost of flour, as well as challenges with UK distribution and staffing.
The group said it also experienced delays in passing through cost increases and had invested in marketing to boost Jason’s Sourdough.
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