Profits at Bermuda Bakery Ltd. have soared during the first nine months of the year - rising 86.5 percent during this period.

The hike in net income from $230,066 in the first three quarters of 2000 to $495,984 for the same period in 2001 reflected the cost savings in operating expenses and a modest increase in rental revenue, the company said.

Chairman of the board James A. Pearman said: "For the nine months of 2001 compared to last year, show a continuing positive trend in Net Income for the company. The sales of bakery products experienced a small (2.5 percent) decline and reflect the slowdown in the hospitality, retail and food service sectors."

But he said that cost containment and efficiency programmes, set in place early in the year, were showing positive results and have resulted in reduced operating costs throughout the company.

In the third quarter both the real estate division and the bakery had a positive net result.

Total revenue for the nine months of 2001 of $4.6 million is almost at the same level as in year 2000.

Operating expenses are expected to decline for the remainder of the year as the cost savings programmes continue to take effect, the company said.

Bakery sales are expected to remain unchanged for the next quarter.

Earnings per share were up $0.81 or 87 percent and amounted to $1.74 per share for the nine months of 2001 compared to $0.93 per share in the nine months in 2000.

The company paid $0.22 per share dividend in the first and second quarter of the year.

The board has also declared a dividend of $0.22 per share for the third quarter payable on those shares of record of November 9, 2001 and payable November 16, 2001.