Franchise and takeover target Brumby’s Bakeries yesterday reported a near 8 per cent lift in first-half profit as customers sought cheaper and fresher bread, ditching products offered at major supermarkets.
The Bendigo Stock Exchange-listed Brumby’s said net profit rose 7.8 per cent to $1.073 million in the six months to December 31 from the same period in 2005.
Its 318 stores in Australia and New Zealand achieved sales growth, on average, of 7.6 per cent — and as much as 17 per cent in some regions, as more customers sought Brumby’s preservative-free, fresh-baked bread.
“Our rising revenue is being strongly fuelled by the combination of two factors, both of which have made us far more competitive with our major rivals — the supermarkets,” said managing director Michael Sherlock.
“Firstly, the retail price of Brumby’s standard white sliced loaf is now, on average, less than the equivalent loaf being sold at supermarkets,” he said.
Supermarket bread prices had shot up by more than 24 per cent in the past year compared with an 11 per cent rise for Brumby’s.
“Secondly, there is a growing awareness among consumers that the plant bread they have traditionally bought at large supermarkets is often days old,” he said.
“Brumby’s expects this trend to continue as part of a growing movement among consumers searching for ‘fresh’ food’.
The management-led buyout by Mr Sherlock’s consortium, BBS Pty Ltd, has emerged as the preferred bidder for Brumby’s after bumping out a rival offer by the Southport-based Retail Food Group.
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