Hovis Limited: announced FY-2023 financial results

High Wycombe / UK. (hol) Hovis Limited, a portfolio company of Endless LLP since November 2020, announced its results for the financial year 2023 in March. According to the 138-year-old bakery brand the first set of results since a new leadership team has been introduced.

In the 53 weeks to 30 September 2023, turnover rose to GBP 489 million, a GBP 179.2 million increase compared to the 38 weeks prior. Gross profits almost doubled from GBP 52 million to GBP 102.6 million while Ebitda increased to GBP 26.8 million from a loss of GBP (6.7) million. The company turned an operating profit of GBP 3.2 million in the 53 weeks to September 2023 compared with a loss of GBP (24.5) million 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: «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.»