Finsbury: announces FY 2018-2019 trading update

London / UK. (ffg) British Finsbury Food Group PLC, a leading UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is providing an update on trading for the full financial year, ended 29 June 2019, prior to entering its close period.

On a like for like basis (the revenue from operations excluding the revenue from the closed bakeries and acquired businesses) Group sales revenue increased 3.1 percent to 299.3 million GBP, with sales in the second half increasing 5.7 percent against the equivalent period in the prior year. The stronger performance in the second half was driven by organic growth, price recovery and the previously communicated new business wins. Including closed and acquired businesses, Group sales increased by 3.8 percent to 315.3 million GBP, with sales in the second half increasing by 11.7 percent.

In the Group’s core division, UK Bakery, like for like sales grew by 4.7 percent, which is ahead of the wider market and was achieved despite the ongoing malaise in consumer confidence and the broader macro environment. The Group’s Overseas division declined by 9.8 percent on a like for like basis but grew by 13.2 percent when including the acquired Ultrapharm business.

The Group is confident of delivering profits in line with market expectations for the full financial year ended 29 June 2019.

The Group has invested in new capacity in its Free From bakery manufacturer, Ultrapharm. A new bakery in Poland has been commissioned and is nearly complete, alongside investment in additional resources and skills to deliver a stronger platform for anticipated future growth.

Whilst elements of cost inflation are moderating following spikes in recent years, inflationary pressures remain. As a diverse multi-channel speciality bakery group with an ongoing investment programme, Finsbury is well placed to continue to drive efficiency, deliver innovation and maintain its leading position in the market, despite the wider market conditions.

John Duffy, Chief Executive of Finsbury Food Group PLC, commented: «We have navigated through an intense period of cost inflation and broader macro issues, and as such, we are very pleased to be reporting a strong return to growth in the second half, delivering a performance that is in line with market expectations.

«We look forward to reaping the benefits of the investment in Ultrapharm, an acquisition that has further diversified the Group into higher growth markets. As a focused and diversified Group, we remain optimistic about the growth prospects ahead.»

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