Gail’s Bakery is set to expand its presence with plans to open 35 new outlets across England in its current financial year, while also exploring a potential £500m sale.
The London-based company has seen significant growth, opening 21 new shops in the last 12 months and witnessing a revenue increase from £181.7m to £231.7m, as reported by .
According to the latest accounts filed with Companies House for the year ending 29 February, 2024, Gail’s Bakery reduced its pre-tax losses from £12.8m to £7.4m. The bakery's wholesale revenue climbed from £70.2m to £83.7m, and retail sales soared from £135.3m to £179m.
EBITDA [earnings before interest, taxes, depreciation and amortisation] also saw an increase from £29.8m to £43m, and adjusted EBITDA from £31.8m to £44.7m. The directors of Gail’s Bakery include chairman Luke Johnson, CEO Tom Molnar, and restaurant investor Henry McGovern.
Reports from March 2024 indicated that Bread Holdings, which owns the bakery chain, was being primed for a sale potentially worth £200m, but recent estimates have placed the business's value at around £500m. The board attributed the robust performance to the opening of new bakeries and continued growth in established locations, as stated in a report: "Over the year, trading was strong – with the group opening 21 new retail bakeries and continuing to see healthy growth in our established locations."
"In addition, the wholesale part of the business continued to grow its large food service business – from its bakeries in London, Manchester and Bath; and due to the continued success of the brands produced and sold through several large º£½ÇÊÓƵ supermarket businesses."
"The group continues to invest in new retail openings (21 in FY24 and 35 planned in FY25) and will continue to expand in wider geographic areas within the º£½ÇÊÓƵ."
"In addition to the retail space, investments in production capabilities were made in the year with more production lines continuing to move into the new central bakery in Milton Keynes."
"Top line growth in both businesses remains the primary engine of the group’s profit and EBITDA performance and this growth was strong in the year – led by the opening new space and the continued appeal of our offer."
"Additionally profit growth was aided in the year by some improvements to our operating margin drive by the growing share of our business coming from the more profitable retail arm."
"Gross profit margin fell because of increases in staff costs and utilities."
