MARKET leading producer of chilled savoury products Addo Food Group has had a steady year in terms of sales with annual turnover increasing by 12% to £312m from £278m in the previous financial year.
During the period that ended 30 March 2019, operating profit before exceptional items saw a slight increase in pre-tax profits to £7.6m from £7.5m.
The group, which manufactures under the Wall’s Pastry and Pork Farms brands and has more than 2,500 employees, confirmed that turnover has increased, but operating margins have been affected by customer demands and cost inflation.
The savoury snacks manufacturer, which produces a range of sausage rolls, pork pies and pasties for a selection of major UK retailers, appointed Deborah Bolton as the company’s new CEO in February this year. Deborah has been with the business for over 10 years, she was previously General Manager at multiple Addo sites before being promoted to Divisional MD and now CEO. She has a clear vision for the business to be competitive in its existing markets and deliver growth via innovation and new products. Deborah has always committed to drive corporate responsibility and employee welfare in her businesses.
Bolton said: “It’s been a year of change for our business as we continue to adapt our strategy in order to maintain our market-leading position and meet the changing demands of the sector. We have at the same time continued to meet changing consumer tastes and successfully launched a range of Walls vegan rolls with further products due to be launched in the New Year.”
In July 2019, Addo Food Group announced a proposal to close its Spalding Bakery to ensure the group maintains its market leading position and meet customer expectations in an increasingly competitive market. The rationalisation of the factory footprint will streamline operations and at the same time allow Addo to be more agile to respond to evolving consumer tastes.
Following a comprehensive consultation process, the closure of the site has now been confirmed for September 2020. Savings made from reducing the group’s footprint will be invested in the remaining sites to increase their capabilities and efficiencies. Addo will now focus on its other five existing UK manufacturing sites based in Nottinghamshire, Dorset and Shropshire, and is in the process of transferring the manufacturing of the Spalding site’s products to Poole and Palethorpes bakeries.
Bolton added: “The company has responded positively and proactively to changes within the sector. We’re encouraged by the progress that the business has made in the past year as we implement our new strategy.
“This is reflected in the increased revenues in our latest financial statements. We are confident that the group will continue to grow volume and profitability through innovation, customer service, product quality and continued investment in its assets.”