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Bermuda Bakery Limited Restructures
"After a comprehensive review of the bread products market, and the unsatisfactory earnings and losses in the Bakery Operations over many years, the Company's Directors are moving forward with a restructuring plan that includes the discontinuation of the baking of breads and rolls," says Board Vice Chairman, Mr. David White. "This is part of a planned restructuring of the Bakery Operations and is designed to protect shareholder interests while balancing commitment to employees, customers and other stakeholders."
The unaudited consolidated net income for the Bermuda Bakery Limited and the Bermuda Bakery (Operations) Limited for the first six months of 2003 compared to last year declined by $200,468 (56%).
The bread baking operation will cease and arrangements have been finalized to secure the supply of key brands and products from alternate sources. With over 80 years of baking the highest quality products, The Bermuda Bakery is committed to ensuring the continuity of the supply of the baked products that Bermudians have come to know and trust.
"Regretfully the suspension of baking bread and rolls will result in the redundancy of one-third of current Bakery Operations employees," says General Manager John Massa.
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"However, the Bakery will retain two-thirds of its workforce and will continue to distribute breads, and to bake cake and snack products from its present location," continues Mr. Massa. "We are proud of our workforce and the contribution that generations of Bermudians have made to the company over the years."
The overall restructuring plan will ensure the remaining cake and snack production positions, and the sales department, which comprises the Island's most extensive bread products distribution network. These changes will result in improved revenues and will better position the Bakery Operations to meet customer needs in a changing market. It will also provide the flexibility needed to evaluate the long term requirements of the Bakery Operations, and the opportunities for the future utilization of the Pitts Bay Road property.
The Belvedere Building, and other holdings and investments of the real estate division, continue to perform well as a result of the significant improvement in the control of costs and the 2002 capital investments made to improve energy efficiency.
Construction and installation of the new, high efficiency air conditioning and air quality system is proceeding on schedule and is expected to be completed by the end of summer. This $750,000 project is the final phase of a planned upgrade to the Belvedere Building to ensure the most modern of facilities and environment for tenants.