Warburtons the baker increased its pre-tax profits by 4.9 per cent to £34.6m in the year to October 2016, despite a 4.6 per cent decrease in sales.
New products, like its "giant crumpets", helped the family-owned company grow its profits.
Cost-cutting also contributed to the increase in profits. An improved focus on cost control within the business resulted in a 2.3 per cent rise in operating profit to £35.5m. The company shed 66 staff and cut spending on raw materials and consumable costs by 16 per cent to £137.2m.
The Bolton-based business’ revenues had dipped 4.8 per cent to £526.3m due to what the company called the "increasingly competitive wrapped bakery market".
Warburtons gave out no dividends but reported a large increase in cash held at the end of this cycle to £56.7m, up from £34.2m in the previous period.