R8,2 billion
Revenue
2023: R9,1 billion
Our ambition
Albany will become South Africa's most relevant and loved bread brand by being the lowest per unit cost producer, delivering superior quality with a relentless focus on efficiencies, to drive sustainable and profitable growth for stakeholders, powered by a highly skilled team.
R8,2 billion
Revenue
2023: R9,1 billion
R0,63 billion
Operating income
2023: R0,68 billion
8%
Operating margin
2023: 8%
Revenue decreased 10% this year to R8,2 billion driven mainly by a decline in volumes as a result of an extensive maintenance programme and a deliberate strategy to enhance margins over time by reducing the reliance on promotional activity. Despite this year's performance, we are on track with our two-year turnaround strategy aimed at restoring cost leadership and realising long-term growth opportunities through our optimised operating model.
In the first six months since their appointment, the new Bakeries management team has made valuable progress in addressing some of the deep internal challenges facing the business, laying a strong foundation for our ambition of ensuring that Albany is South Africa's top bread brand and the lowest cost per unit producer of quality bread in the country. As part of a two-year turnaround strategy, we have launched an extensive portfolio-wide bakery maintenance programme to restore bakery stability, reduce the level of damages, and improve bread and supply chain quality. Our Bakery optimisation initiatives include significant investments in equipment upgrades and replacements, rebasing the operational cost base, optimising the fleet and route-to-market, improving our depot network and ensuring timely passing through of inflationary costs. We have an extensive cost-cutting programme in place to deliver targeted savings without impacting product quality, availability and service levels.
These various initiatives are progressing to plan and beginning to yield positive results. This is reflected in lower monthly operating expenses and improved product quality and availability, with some bakeries achieving up to 50% reduction in damages. These activities have been underpinned by investment in training our sales, maintenance, supervisory and management teams, and in instilling a strong performance-based culture, as well as a renewed emphasis on customer engagement.
In delivering on the Group's growth strategy, we have identified opportunities to rationalise SKUs and to drive growth through innovations in affordability, health and nutrition and snackification. We are strengthening our presence in the general trade segment through our point-of-sale and branding toolkits and focused promotional campaigns, supported by improvements in our route-to-market.
Wheat regional millers remain a challenge, with their aggressive pricing and ability to offer retailers lower priced basket product offerings for combo bundles. Affordability continues to be the key driver for purchase, with a focus on ensuring relevance and presence for consumers.