CONSOLIDATED Bakeries Limited (CBL) has taken the approach of working locally in order to grow its exports.

While other companies are now looking to boost exports and penetrate global markets as a way to grow distribution and sales, Chairman and Managing Director Anthony Chang says his company is taking the reverse approach by looking at strengthening its domestic market.

“It may sound paradoxical or contradictory but when you think about it, you don’t want to go overseas if you’re not strong in your home,” said Chang during the CBL’s annual general meeting on Wednesday.

For its financial year ending December 2022 Consolidated Bakeries’ export business grew by 31 per cent. According to Chang, further growth in exports can be expected for 2023 but its attention is not on international markets just yet.

“We’re primarily going after the Diaspora market and we have not crossed over to the non-Diaspora market — that is a five-to-eight-year programme,” he added.

CBL’s focus is on product development and deepening its distribution locally this year. Despite the lingering challenges of last year, with inflation rising 8.1 per cent between January 2022 and January 2023; the cost of flour — which represents a significant part of the company’s cost of goods — rising by 4.7 per cent; and lack of entry-level staffing, the company is attempting to keep its margins tight. Its key movement is product development, which the chairman says is a way for the company to renovate its existing products, improve the quality and taste, and innovate new products.

“Going into 2023/24 our PD [product development] programme will take up more space and pace and, hopefully, take up more space in people’s wallet and shelf space,” he said optimistically.

Additionally, when CBL assessed its performance last year, sales had increased by 30 per cent and gross profits had grown by 26 per cent to $537 million, which Chang credits to Easter sales.

“We expect, going into next year Easter, additional intense competition from our competing brands but we’re getting ready for that — and in fact Easter [20]24 planning has already begun,” Chung asserted.

To boost its product development CBL has invested in a new bread line. Though it’s still in the testing phase, Chang says it will be functional in short order. The operations and design of the system were unveiled using visual aids during its AGM, showing a fully digital system which is 56 per cent operational. The system will aid in the formation of dough and the baking of the bread.

“You may think that this thing is simple but you have to get the correct millimetre of the debt of the dough, you have to get the right temperature,” he said while revealing the design to shareholders.

During the financial year the company invested over $60 million in capital expenditure, plant, machinery, and equipment. It also improved its fleet, office furniture and fixtures, and computer equipment, which resulted in an increase in its property and plant equipment costs of 4 per cent, from $758.8 million to $786 million. Revenues for the financial year increased by 26.5 per cent, closing at 1.37 billion compared to 1.08 billion in 2021. Profit after tax stood at $13.88 million in comparison to a loss in 2021 of 17.64 million.