2023 Results
- Hovis produces strong set of results over past 12 months, under fresh leadership
- Unveils operating profit for 53 weeks to 30 September 2023 of £3.2m v £(24.5)m loss in 38 weeks to September 2022
- Revenues of £489m v £309.8m
High Wycombe, Bucks March 26 2023
Hovis, the much loved bakery brand whose products are a staple in many people’s shopping baskets, today announces its first set of results since the new leadership team has been introduced.
In the 53 weeks since September 2022, turnover rose to £489m, a £179.2m increase compared to the 38 weeks prior. Gross profits almost doubled from £52m to £102.6m while EBITDA increased to £26.8m from a loss of £(6.7)m. The company turned an operating profit of £3.2m in the 53 weeks to September 2023 compared with a loss of £(24.5)m over the previous period. Operating improvements and cost savings were also made to drive a step up in overall efficiency and customer service, critical components of running a national bakery business.
Having moved the business back into a sustainable financial position Hovis is now focused on strengthening its competitive position in the market. A new advertising campaign breaks this week reintroducing the famous Hovis tag line ‘as good today as it’s always been’ to support volume growth in its core bread business.
Additionally, Hovis has signed an exclusive manufacturing and distribution agreement with Modern Baker, the Oxford based start-up, to target further growth in the health and nutrition space with the expansion of their SuperLoaf and SuperBakery franchise across the UK and Ireland.
From a supply chain perspective, Hovis is investing to strengthen its logistics capability. By the end of 2024 all the national delivery fleet will be less than 12 months old and using the latest technologies to drive lower emissions and greater fuel efficiencies. On the back of this investment Hovis is expanding its third party logistics business to carry other bakery products to stores on behalf of its customers. This helps to reduce food miles and waste in the supply chain as well as strengthening relationships and revenue with key retailers.
Hovis CEO Jon Jenkins said “We have made good progress in last 12 months, with much improved financial results, stronger relationships with major customers and more substantive growth platforms in place for the future. This is a testimony to the hard work and dedication of our colleagues across our bakeries and distribution centres to lead the market on quality and service whilst always looking to improve the business week in, week out. Whilst the cost of living crisis and recessionary economic backdrop remain challenging our business remains well funded with strong shareholder support and we are looking forward to delivering sustainable growth for years to come.”