While revenue rose 3% to £387.7m, the group reported a pre-tax loss of £7.2m – a marked improvement on the £13.6m loss recorded the previous year. The bottom line was weighed down by financing costs, which totalled £29m for the period.

The company’s US subsidiary, Wornick Foods, was the primary driver of growth, supplying rations to the military and disaster relief efforts following hurricanes Milton and Helene. The division provided over 414,000 meals for emergency response efforts. Consequently, North American revenue rose to £253.1m, while UK sales saw a modest increase to £121m. Conversely, the Australian division experienced a revenue dip to £13.6m.

To strengthen its balance sheet, Baxters completed a sale and leaseback of facilities in Oregon and Kentucky, raising £34.7m. Proceeds of £25.9m were utilised to repay bank borrowings, helping reduce net debt to £134.8m.

The accounts show the highest-paid director received £1.88m, up from £1.66m, while a dividend of £1.1m was paid to shareholders.

Audrey Baxter, executive chairman and the fourth generation of her family to lead the Fochabers-founded business, noted that while the UK market faces high input costs such as wages and recycling levies, the group remains optimistic. “Food will always be critical, which was clearly brought home in the response to the US hurricanes,” she stated.