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 financial year, ended 2 July 2022, prior to entering its close period.
The Group delivered a robust full year performance in line with market expectations whilst having to manage and adapt the business under exceptional macroeconomic and inflationary headwinds. Total sales of GBP 356.8m represent a 13.9 percent increase of which volume is 8.7 percent versus the corresponding period in the prior year. The Group delivered a strong second half performance, with H2 revenues up 18.7 percent (volume is 10.0 percent) against the corresponding period in the prior year.
This growth in sales has been driven by a stable performance in the Group’s core division, UK Bakery, +12.1 percent, which includes a continuation of the robust recovery in foodservice, +38.1 percent, and a +26.6 percent increase in the Group’s Overseas division.
The Company has continued to be challenged by the persistent pressure from input cost inflation, staff shortages and other supply chain disruptions. Pleasingly, it was able to mostly mitigate the impact of these pressures through revised commercial arrangements, operational improvements and other supply chain initiatives. It will continue in the same vein as further inflationary cost pressures are expected in the new financial year.
The Group also successfully negotiated a new four + one year GBP 120m credit facility (GBP 60m core + GBP 60m accordion) effective as of 27 June 2022. As relayed in the February 2022 Interim Results announcement, the Board continues to explore opportunities to accelerate the growth of the Group through targeted acquisitions. Whilst the current stock market conditions persist and lower ratings of food manufacturers become a feature, these new credit facilities provide financial flexibility for the Group to pursue its significant growth ambitions.
Notice of results
The Group will announce its Full Year Results, for the twelve months ended 2 July 2022 on Monday 26 September 2022. Finsbury will host a webinar for analysts at 09:00am on 26 September 2022. Analysts wishing to attend the webinar should contact Alma PR.
The Company will also host a presentation for retail investors on the Investor Meet Company platform at 16:30pm GMT on Tuesday 27 September 2022. Shareholders who already follow Finsbury Food Group on the platform will automatically be invited; others are invited to register in advance via a link on the company’s server.
Chief Executive’s Commentary
John Duffy, Chief Executive of Finsbury Food Group PLC, said: «To have delivered a record revenue performance this year that is in line with market expectations despite the challenging backdrop is testament to the hard work of our teams and the resilience of our model. Our Retail business performed well, we continued to see a bounce back in foodservice, and our Overseas division continued to see strong growth.
«In recent years, we have experienced unprecedented challenges first triggered by the Covid crisis and now by significant input cost inflation and falling consumer confidence. While headwinds are expected to persist, we have a strong balance sheet and a successful track record of navigating challenging market conditions. I remain confident in Finsbury’s ability to deliver on its long-term growth ambitions.»