LONDON: UK’s bakery products manufacturer Finsbury Food Group PLC said trading throughout the Christmas period continued to be “solid” with performance in line with management expectations.
According to details, revenue in the first half of its financial year, covering the six months to December 31, was flat year-on-year at GBP156.6 million, as 32% growth in the international business offset a 2.9% decline in the UK bakery division.
Finsbury said the poor UK performance was against a backdrop of deflation in the retail food market. Also in the half, Finsbury invested a record GBP5 million in capital projects to build on product innovation, while improving efficiency and productivity.
The company said continued investment will play an important role in helping address the current challenges of sterling-induced commodity inflation and planned national living wage increases, but noted that further cost recovery will be required on top of that due to “the scale of the current cost inflation”.
“Following the exceptional growth and diversification over the prior years, the business is well placed to maintain its position, despite the market conditions. As such, the board believes it is well equipped to continue to deliver growth and improved shareholder value over the coming years,” Finsbury said in a statement.
Shares in Finsbury were trading down 1.3% at 114.00 pence on Thursday morning.
