Samworth Brothers has pushed sales and underlying profits higher despite challenging market conditions and a rising cost base.
Revenues increased 8% to £1.8bn at the food manufacturing giant in 2025 thanks to business wins, volume growth and higher prices. The company said in its latest set of accounts that volumes grew in all its core categories.
Samworth added its brands continued to perform well, with another strong year for Ginsters, supported by the launch of a toastie product, while Higgidy became the fastest-growing savoury pastry brand during the year.
Operating profits before non-recurring costs nudged up by £4m year on year to £66m as the group worked hard to mitigate rising costs associated with labour through operational efficiencies and product reformulation in an attempt to keep a lid on price hikes. Samworth also experienced a jump in beef, chicken and pork prices in the year to 27 December, passing some of the rise through to its customers.
Adjusted EBITDA for the year totalled £121.5m, compared with £118.1m in 2024, thanks to the higher volumes, which the group said were ahead of the overall grocery market.
However, pre-tax profits slipped 19% from £23.7m to £19.2m after factoring in interest payments and other one-off costs.
Samworth operates in a number of categories, including food-to-go, ready meals and savoury pastry. It recently agreed to sell its Walkers Deli & Sausage Co to Pilgrim’s Europe.
“2025 was a strong year for Samworth Brothers, despite significant external challenges,” CEO Simon Wookey said.
“Across the business, new opportunities supported growth, with savoury pastry and food to go expanding through both existing and new customer relationships. Our meals category also benefited from new private label and branded partnerships, including Yo, Wotsits and Marmite.”
During the year, Samworth invested £75m across its factories, including the completion of a £30m expansion at Bradgate Bakery in Leicester, upgrading infrastructure at Kettleby Foods to cater for new business in the meals category team and the transformation of savoury pastry operations in Cornwall. It took total capital investment over the past eight years to £444m.
The spending continued to add to net debt, which increased £13.5m to £203.5 by the year end. It stood at just £60m in 2022.
However, Samworth added it continued to operate “comfortably” inside covenants and maintained significant liquidity headroom, with £150m drawn from a total £190m available on its revolving credit facility.
One-off costs in 2025 totalled £26.7m on the back of the closure of the lossmaking Avonmouth site in Bristol at food-to-go supplier Real Wrap.
Additionally, Samworth and the trustee of the company pension scheme concluded that normal retirement dates for male and female members between 1990 and 1999 had not been applied consistently. The scheme administrators made a change to equalise pension benefits for all members in this period, costing the business £9.5m in the 2025 year.
Samworth said in the accounts the matter was complex, and the company and trustees were still uncertain on how the pension increases from 1992 to 1997 should be administered by the scheme, which could result in additional liabilities. A court hearing will be held at the end of 2026 or in 2027 to determine the appropriate treatment, which could result in liabilities increasing by up to £26m if findings go against the company.
The deficit in the defined benefit pension scheme at Samworth also increased in 2025 from £94.5m to £108.5m, with no contributions made during the period.
Wookey added: “As we look ahead, we remain focused on doing ‘good things with great food’, supported by our shareholders and our outstanding team of people. Trading conditions continue to be tough, and the food sector remains dynamic and fast-moving, with changing consumer habits, developments such as GLP-1 weight-loss drugs, and an increased focus on health and sustainability. We are embracing these opportunities and challenges head on, with even greater pace and focus.”
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