Gail’s profits rise on back of deals with supermarket chains

The bakery chain Gail’s has reported a rise in profits after striking deals to sell its bread and pastries via supermarkets and Deliveroo.

Gail’s parent company Bread ­Holdings said pre-tax profits for the year to February were £4.4m, up from £3.5m in the prior year. 

The higher returns came despite a 27pc drop in sales to £84.5m as lockdowns forced the closure of wholesale customers such as hotels and restaurants.

However, the company said sales were underpinned by new deals with several supermarkets and delivery apps as well as its own website. Its products, which also include the Bertinet bread range, are stocked in Waitrose and on Deliveroo.

A controlling stake in Bread Holdings was sold by the former Patisserie Valerie chairman Luke Johnson’s Risk Capital Partners to the private equity firm Bain for £200m earlier this year.

Risk Capital Partners invested in the company in 2011 when the group had about £25m in annual sales having been founded in the early 1990s.

In accounts filed at Companies House, the company said it is planning to open more sites in the year ahead. 

Bread Holdings did not respond to requests for comment. 

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