London / UK. (ffg) Finsbury Food Group PLC, a leading manufacturer of cake, bread and morning goods, held its Annual General Meeting this week. At the meeting the Chairman issued the following update on trading for the first 17 weeks of the current financial year ending 30 June 2011:
The Bread and Free From division has continued to achieve strong, organic growth of 12,3 percent year on year. The principal driver of this growth is the introduction of the company´s innovative fresh gluten free bread ranges.
The Group´s larger Cake division has now returned to growth following last year´s decline, with organic growth of 2,5 percent year on year. This increase, which is partially a result of increased promotional investment that the company has made, is particularly significant when compared to the wider cake market which has remained flat.
As a result, revenue for the Group has increased year on year, with sales for the 17 weeks to the end of October 4,9 percent higher than the corresponding period last year on a like for like basis. There were no acquisitions in the period. Recent cost saving initiatives have enabled the Group to take advantage of growth opportunities and delivered the desired reduction in the cost base.
Finsbury Food continues to navigate its way through difficult trading conditions and has seen marked increases in commodity prices. However, following the implementation of recent integration initiatives Group efficiency, product quality, and customer service have improved, resulting in operating margins remaining broadly unchanged. Adding to this, Chief Executive John Duffy commented:
«Finsbury maintains a strong market position and our commitment to product quality and innovation is second to none and has underpinned our return to growth. We are pleased with the reported update and, remembering the remaining tough economic conditions, I am happy with the Group´s progress so far this year. Finsbury remains a competitive player in its market place with a loyal and diversified customer base. We will remain adaptive to changes in market and customer demand by utilising our highly skilled, innovative and flexible production capability. Our strong management teams will continue to optimise the Group´s strengths throughout this challenging period».
