FDBusiness.com

Despite a 2.5% drop in sales to £125.8 million Baxters Food Group increased pre-tax profit by 6.9% to £7.1 million for the year ended May 28th 2011. The drop in turnover is attributable to the UK market where the practice of low margin promotional activity shows no sign of easing, according to Audrey Baxter, chairman of Baxters Food Group. However, the company reported double-digit growth in overseas sales.

“These figures reflect a solid financial performance in a tough economic environment,” comments Audrey Baxter. “We have operated in economic uncertainty for the last two years and we believe this will continue well into the next two years and beyond.”

She adds: “The volatility in demand, cost of operating and uncertainty of supply, make the planning and implementation of good practice in a manufacturing company very challenging. Our strategy is to focus on our core strengths targeting markets well suited to our product portfolio.”

The Scottish food group continues to invest in developing innovative new products. During the year under review it launched the Stay Full range of slow-energy release soups, a full range of luxury chutneys and entered a new category in meat ambient ready meals.

In November 2011, Baxters acquired Fray Bentos for an undisclosed sum from Princes Group. Princes was ordered by the UK Office of Fair Trading to dispose of Fray Bentos, which produces a range of canned pies and puddings as well as corned beef and meatballs, as a condition of its purchase of Premier Foods’ canned grocery operations for £182 million in July 2011.

“The recently completed acquisition of Fray Bentos demonstrates our ability to acquire one of the UK’s best known heritage brands. We are currently considering a number of other options,” says Audrey Baxter.